Euro zone ministers to discuss raising rescue fund

| January 17, 2011 | 0 Comments
Euro zone ministers to discuss raising rescue fund

A meeting of euro zone finance ministers will take place today to discuss enlarging the effective capacity of the European Financial Stability Facility (EFSF).

The move comes after speculation mounts that weaker euro zone nations will need to tap the facility for emergency funds.

Portugal and Spain are both under scrutiny and face pressure to seek a bailout in order to prevent the euro zone debt crisis spreading further.

Borrowing costs in both countries have risen recently - mimicking what happened in Greece and Ireland – just before they were forced to seek emergency aid.

However, both countries continue to fiercely deny that an EU bailout is required.

Meanwhile, Germany’s Finance Minister, Wolfgang Schaeuble, has ruled out boosting the size of the rescue fund.

Speaking to German radio Deutschlandfunk today, he said: “Portugal doesn’t want or need a bailout at all. There’s enough funds for Ireland, and the rest is speculation that is not being stirred up by anyone.”

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