Germany says no to boost the EU bailout (AP) (17-01-2011)

BERLIN -- Germany's finance minister denied a major expansion of the euro750 billion ($1 trillion) eurozone rescue fund waiting the meeting on Monday with his European counterparts.

The European Commission last week advocated bolstering the size of the fund, with some suggesting it should be doubled.

Berlin argues that the only point which needs addressing is how to make sure the fund's full headline value is actually available to lend. At present, it doesn't have the full amount on tap in part because, to get a triple-A credit rating, governments committed to guarantee 120 percent of the value of the bonds the fund issues.

Members of the EU need to reduce their deficit strengthen competitiveness and improve economic coordination.

According to Schaeuble, everyone making a contribution cannot consist only of Germany and France having to give more guarantees, but the debtor countries must solve their problems better -- then we will achieve overall solutions.

Source: AP