Germany could increase its stake in the European state-saving fund EFSF from 211 to 280, perhaps even 290 billion euros. This was stated by two newspapers, the Financial Times Deutschland and the Sueddeutsche Zeitung, which cite government sources. The first maintains that the most probable formula is maintaining the EFSF alongside the new Stability Mechanism (ESM), which will be born in June.
It would be a sensational surrender by the chancellor, Angela Merkel, and the finance minister, Wolfgang Schaeuble, to international pressure to strengthen the European firewall. A pressure that came not only from the European Commission and the International Monetary Fund, but also from the United States, Brazil and China.
The Sueddeutsche Zeitung even mentions how Germany intends to divide its share: 90 billion to EFSF programs for Portugal, Ireland and Greece, plus 168 as guarantees and another 22 as liquidity for the ESM. According to Sz, a decision on maintaining part of the EFSF could come from the next meeting of finance ministers, scheduled for the end of March in Copenhagen.
However, the increase in German commitment would not be shared by everyone within the government, writes the Financial Times Deutschland (FTD). Yet, according to various sources reported to the FTD, a preliminary decision on the matter has already been taken by the Executive.
