No way, on the European stability mechanism Angela Merkel and Mario Monti have two different philosophies. Today the Chancellor's spokesman, Steffen Seibert, reiterated that Berlin sees no need to further increase the capacity of the new permanent bailout fund.
A reply came after the German newspaper Der Spiegel had reported over the weekend that the the Italian premier would have wanted the scope of the ESM to be even doubled (from 500 to 1.000 billion euros). Even the head of the IMF, Christine Lagarde, spoke this morning about the need to increase funding for the ESM.
Angela Merkel for her part added that it is not the time to discuss the increase in bailout funds and that the priority now is to ensure the effectiveness of the current fund (EFSF) and the rapid introduction of its replacement.
