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EU’s Juncker Says EFSF Capacity May Reach 750 Billion Euros

Luxembourg Prime Minister Jean- Claude Juncker, who leads the group of euro-area finance ministers, said the region’s rescue fund may have a capacity of about 750 billion euros ($1 trillion).

“We’re now in discussions with the financial markets, with the International Monetary Fund, with others to seek to gather as much money as possible,” Juncker said on Luxembourg RTL Radio today. While governments probably won’t be able to boost the fund’s firepower to 1 trillion euros as initially hoped, “I expect we will end up getting about 750 billion,” Juncker said.

“Gradually more investors are avoiding Europe,” Juncker said. He also said the European Central Bank is independent and should remain so during a crisis. “We have to let the bank do its own thing.”

Juncker said Germany remains opposed to common euro bonds.

“Still, I am of the view that if we strengthen budgetary discipline, if we get more coordination of economic policy, if we all take care of the budgets of everyone, then conditions would be created that one could, in such an optimal case of integral coordination, emit euro bonds,” he said.

To contact the reporter on this story: Stephanie Bodoni in Luxembourg at sbodoni@bloomberg.net

To contact the editor responsible for this story: Matthew Brockett at mbrockett1@bloomberg.net

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