Germany to double its 2012 euro rescue fund payment: report

20th December 2011, Comments 0 comments

Germany will pay 8.6 billion euros ($11 billion) to the eurozone's new bailout fund next year, twice as much as expected, a German newspaper reported on Tuesday.

Originally the plan was for 4.3 billion euros to be paid in 2013, "but at the moment it's expected that Germany will have to pay around 8.6 billion euros" next year, the daily Die Welt reported citing an unidentified government source.

Eurozone members had initially been due to contribute to the European Stability Mechanism (ESM) over five instalments from 2013, at the request of Germany, concerned about its deficit-reduction programme.

But EU leaders have agreed the ESM, which will take over from the European Financial Stability Facility as the permanent bailout fund, will come into force a year earlier than first mooted, with a lending capacity of 500 billion euros.

Germany's cash contribution to the fund amounts to 21.5 billion euros.

© 2011 AFP

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