German irritation at doubts over euro rescue plan

6th August 2011, Comments 0 comments

German Finance Minister Philipp Roesler has reiterated Germany's irritation at calls from European Commission president Jose Manuel Barroso for a reassessment of the eurozone rescue fund.

In an interview with German weekly Focus, due to be published Sunday, Roseler said: "We are acting with determination to put the decisions from the July 21 summit into place.

"We are showing the markets that we are defending the euro. Questioning these decisions just two weeks later has the opposite effect of worrying the markets."

Roesler already rejected Barroso's call for a "rapid reassessment" of the rescue fund on Thursday, saying: "It is not clear how reopening the debate just two weeks after the summit can lead to calming the markets".

Barroso was reacting to fears that the 109-billion-euro ($157 billion) bailout fund -- known as the European financial stability facility -- agreed for Greece in Brussels last month would not be enough to help Italy and Spain, should they need it.

In the Focus interview, Roesler also underlined budgetary discpline as being the only way to keep a currency secure.

The EU said Friday it was working "night and day" to ready new rescue funding as eurozone lending costs soared and stocks plunged amid fears of a renewed global recession.

Italian Prime Minister Silvio Berlusconi also said after telephone talks with French President Nicolas Sarkozy that finance ministers of the G7 leading powers would meet "in a few days," though this has not been confirmed.

© 2011 AFP

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