Yesterday, Bloomberg reported that European lawmakers were in talks to accelerate plans for the European Stability Mechanism, a permanent Eurozone bailout fund. Stock markets responded positively to these developments.
Earlier today, a senior official from German Chancellor Angela Merkel’s party told Reuters that he supports speeding things up. From Reuters:
Nobert Barthle of the Christian Democrats (CDU), who sits on parliament’s budget committee, said an earlier introduction of the permanent European Stability Mechanism (ESM), due in mid-2013, would help respond more forcefully to the crisis.
“I think it would make sense to push further in this direction,” Barthle told Reuters, arguing that the ESM, with an effective lending capacity of 500 billion euros, will include Collective Action Clauses (CACs) prevent one bondholder from blocking a debt restructuring deal at the expense of others.”
The ESM could come as early as mid-2012.
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