Tony Czuczka and Patrick Donahue
Jan 12, 2011
Chancellor Angela Merkel indicated that Germany is ready to revise the terms of Europe’s rescue fund for indebted states, underscoring her willingness to take whatever steps are necessary to blunt the sovereign debt crisis.
“We support whatever is needed to support the euro, also with respect to the rescue fund,” Merkel told a joint press briefing in Berlin today with Italian Prime Minister Silvio Berlusconi. “We’re saying what we’ve always said since the Greek crisis: We will stand by the euro.”
Merkel may back extra measures to support the single currency after bailouts for Greece and Ireland, budget cuts in Portugal and Spain and a deal to create a permanent crisis- resolution mechanism all failed to calm bond markets. She is due to discuss support for the euro in talks with International Monetary Fund Managing Director Dominique Strauss-Kahn today.
“They are learning and they are changing their position,”Carsten Brzeski, an economist at ING Groep NV in Brussels, said in an interview. “We’ve all learned that if one country takes the bailout package, it does not mean that the contagion and speculation stops.”