Euro Region Needs Bigger Backstop, Rostowski Says

(Corrects to say trillion in first paragraph. For more debt-crisis news, see EXT4.)

The euro region needs a financial backstop of as much as 3 trillion euros ($4 trillion), Polish Finance Minister Jacek Rostowski told Germany’s Handelsblatt newspaper.

A lending capacity of 1 trillion euros for the European Financial Stability Facility isn’t enough to impress investors, he said.

A 50 percent reduction of large euro members’ outstanding debt wouldn’t be possible without pushing the countries’ banking systems into insolvency, Rostowski, who chairs meetings of European Union finance ministers, also told the newspaper.

Deeper and faster integration of the 17-member euro region must not lead to a division of the 27-member EU, he said.

To contact the reporter on this story: Rainer Buergin in Berlin at

To contact the editor responsible for this story: James Hertling at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.