Capital is needed to save Greece and expand the European Financial Stability Facility (EFSF), but one cannot ask the European Central Bank endlessly. This is why European leaders are continuing to propose solutions to meet new capital. In Brussels today, Angela Merkel and Nicolas Sarkozy reaffirmed their support for the idea of taxing financial transactions and their willingness to try to persuade other eurozone leaders.
The spokesman for the German chancellor, Steffen Steiber, declared that the Berlin government is confident that Italy will try to reduce the excessive public debt. Furthermore, Steiber added, the German government is working with the private sector to improve the debt sustainability of the Greek government, but that it does not want to increase its debt through the EFSF.
