Euro Rescue Fund Faces Political Demands That May Weaken It
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Europe’s rescue fund faces political demands that risk hobbling its response to emergencies as the 17 euro-area governments prepare to ratify its overhaul.
The fund, known as European Financial Stability Facility, would have to wait for a request from a debt-hit government before buying its bonds in the secondary market, its new statute shows. The extra step, along with German lawmakers’ demand for control, may make it less responsive than the European Central Bank, which has bought 115.5 billion euros ($167 billion) of bonds in the past 16 months to calm markets.