Banks should not tap euro bailout funds directly: Germany
(BERLIN) - The German government is opposed to allowing troubled eurozone banks to tap the region's EFSF bailout fund directly as suggested by some member states, spokesman Steffen Seibert said Friday.
"We don't see this as a suitable option," Seibert told reporters at a regular briefing.
"The principle must continue to be the staggered procedure currently in place," the government spokesman insisted.
First, the bank should try to solve its problems on its own, then apply to its government or another member state if that did not work.
Finally, there was the possibility for the government to turn to the bailout fund, the European Financial Stability Facility (EFSF) or its successor, the permanent European Stability Mechanism (ESM), he explained.
A spokesman for the finance ministry dismissed media reports earlier in the week that negotiations were already underway on the matter.
Ireland has requested the possibility for banks to apply for aid directly, and the head of the International Monetary Fund, Christine Lagarde, has also said she favours such an option.
Berlin has repeatedly argued that the rules for the EFSF have been agreed and should not be altered easily.
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