February 16, 2011

CSU tough on euro reform

 

German Chancellor Angela Merkel's conservative allies reject calls to allow the euro zone's rescue fund to buy the bonds of vulnerable member states and also oppose giving these countries funds to buy back their own bonds, according to a party paper seen by Reuters.

 

In the paper, which must still be approved by the party leadership, the Bavarian Christian Social Union (CSU) also urges an end to the European Central Bank's bond-buying programme and says any aid from the euro zone's rescue fund should be limited to three years.

 

"The financing of debt through the European Central Bank, the EU or through other member states must be ruled out completely, especially: government financing through joint bonds (Eurobonds); the purchase of government bonds through the ECB or EFSF/ESM rescue funds; the offering of credit to over-indebted euro members to finance the repurchase of bonds on the secondary market," the paper reads.

 

Source: Reuters:Reporting by Andreas Rinke; Writing by Noah Barkin

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