Germany Defies Calls To Create €1 Trillion Firewall

Germany Angela Merkel

Photo: AP

BERLIN (AP) — Germany has criticised a call for the eurozone to boost its financial firewall to €1 trillion ($1.3 trillion), arguing that demanding ever-high sums only unsettles markets.The organisation for Economic Cooperation and Development made its call on Tuesday. It came after Germany signaled it will support a temporary increase of the lending capacity of the eurozone’s two bailout funds to around €700 billion ($929 billion).

Chancellor Angela Merkel’s spokesman, Steffen Seibert, said Wednesday: “It is regrettable that apparently no figure is ever high enough in this discussion.”

Seibert argued that advocates of a much-increased firewall overlook questions over whether countries could credibly finance it. He added: “the result of such proposals … is unfortunately that markets are unsettled again and again.”

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