German Chancellor Angela Merkel has vowed to take the necessary steps to save the eurozone from the looming sovereign debt problems that are threatening the stability of the region, according to Bloomberg. In a speech in Berlin, Merkel said, “We support whatever is needed to support the euro,” before adding her support for necessary action “with respect to the bailout package.” European leaders are set to open discussions over expanding the European Union’s €440 billion European Financial Stability Facility, which could grow in both “size and scope,” according to Economic and Monetary Affairs Commissioner Olli Rehn.
The latest statement from Merkel represents a substantial shift from Germany’s stance in December that there was no need to increase the amount of aid available from the fund. Meanwhile, leaders are said to be discussing a possible bailout for Portugal, which could include a loan of as much as €60 billion in addition to purchases of Greek debt. Rehn said officials would be discussing “all options for the size and the scope of our financial backstops,” and the possibilities are said to include offering aid at lower interest rates, allowing aid to be used to retire debt, and amending collateral rules.
Click here to read the story on Merkel’s statement from Bloomberg News.
Click here for coverage of aid revisions from Bloomberg News.