Raising EU bailout fund 'a silly idea': German minister

27th September 2011, Comments 0 comments

Increasing the size of the EFSF eurozone rescue fund is a "silly idea" that "makes no sense," German Finance Minister Wolfgang Schaeuble said Tuesday.

"If we increase the figure, I don't understand how anyone can have such a silly idea. The result will be that other member states will be endangering their triple-A" sovereign debt ratings, Schaeuble said.

"That doesn't work. It makes no sense."

Germany is fiercely opposed to ploughing more money into the 440-billion-euro ($590 billion) European Financial Stability Facility.

Media reports have suggested that international rating agencies may even downgrade the top-notch "AAA"-rating on German sovereign debt if the fund's ceiling is increased, because Germany, as Europe's paymaster, would have to foot most of the bill.

Earlier government spokesman Steffen Seibert said: "There is full agreement within the federal government that the EFSF, as it will be voted on by parliament on Thursday, stands precisely as was agreed on July 21" by eurozone leaders at 44O billion euros.

© 2011 AFP

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