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Debate and speculation ahead of rescue fund decision

brussels bureau

Debate and speculation ahead of rescue fund decision


The German Finance Minister Wolfgang Schäuble is tipped to be the next president of the Eurogroup, according to several sources in Brussels and in other European capitals, but the decision will
not be finalised until June.

Schäuble could take over from Jean-Claude Juncker.
Luxembourg’s prime minister took part in a debate on Tuesday on the economic situation in Europe with the former president of the ECB, Jean-Claude Trichet ahead of finance ministers deciding at the weekend on the size of the firewall to protect the euro.

“I think the firewall is very important. It is very important too from the perspective of not having to use it at all, for it to act as a deterrent,” said
Jean-Claude Trichet.

Germany accepted on Monday that the bloc’s two rescue funds, the EFSF and the ESM could run in parallel boosting the funds which would be available. It is a decision welcomed by French MEP,
Sylvie Goulard of the Group of the Alliance of Liberals and Democrats for Europe.

“This measure which we have taken on board is replacing a temporary fund with a permanent one, which posed a number of problems for Germany.
I think it is a first step in the right direction, and it could be used if larger countries than those which have already benefited need European aid,” she explained.

Some analysts believe a larger country in need of rescue could be Spain. Its predicted a fund of around 700 billion euros will be agreed. Thats well short of the one trillion called for by the OECD.

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