REPORT: Merkel May Let Bailout Fund Buy Sovereign Debt

merkel hollande eu summit may 2012

Photo: The Council of the European Union

Angela Merkel told reporters that the region’s bailout fund could be used to buy crisis-hit sovereign debt, in a bid to lower borrowing costs hitting periphery members including Spain and Italy.However she said leaders had yet to discuss how to use the European Financial Stability Fund to make bond purchases and “no concrete plans” had been made.

Merkel made the remarks after speaking with Dutch Prime Minister Mark Rutte in Germany.

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