Monday, August 15, 2011

Merkel warned against funding EU

German Chancellor Angela Merkel

Source: Press TV

The German chancellor's party warns her against making any rash decisions to further help the debt-ridden EU states amid prospects of the sinking of the Eurozone economy to lower depths.

Leading members of Angela Merkel's coalition of the Christian Democratic Union (CDU) have called for an emergency meeting among party members before the government makes any such commitments, AFP reported.

On Saturday, the President of the Bundestag (the German parliament), Norbert Lammert, who himself is a CDU member, cautioned Merkel against forcing the parliament to take measures to strengthen the European Financial Stability Facility (EFSF).

The EFSF was set up in a bid to help maintain stability in the Eurozone by lending up to EUR 440 billion to its member states.

The developments came amid European governments' efforts to rush measures through their own parliaments to bring stability to European financial markets, which have taken major dives over the past week.

Earlier, the European Central Bank bought up Italian government bonds to help reduce borrowing rates.

The 27-nation bloc, which has spent much of the past 18 months trying to battle its debt crisis, has so far helped out Greece, Ireland, and Portugal with bailout packages.

The collective warning message came ahead of a meeting slated for Tuesday between Merkel and French President Nicholas Sarkozy aimed at discussing the Eurozone's financial crisis.

The Free Democrats (FDP), the Bavarian Christian-Union (CSU) and other members of the ruling coalition have dismissed bringing in Eurobonds to curb the EU crisis.

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