EFSF, ECB Preparing to Intervene, Juncker Tells Sueddeutsche

Luxembourg’s Prime Minister Jean- Claude Juncker, who also heads the group of euro-area finance ministers, said the region’s temporary rescue fund and the European Central Bank are preparing act together to reduce borrowing costs, Sueddeutsche Zeitung reported, citing an interview.

“We act together with the ECB, without touching its independence,” Juncker was quoted as saying when asked whether the EFSF was getting ready to purchase sovereign bonds. “If I say ‘we,’ I mean the euro rescue fund EFSF, that means the 17 euro countries,” he said, adding that “I don’t want to fuel expectations but I have to say we have reached a decisive point.”

Juncker added that no decisions have been taken yet on exactly what action will be taken and it will depend on developments in the coming days, according to the report. “We have no time to lose,” he said.

To contact the reporter on this story: Jana Randow in Frankfurt at jrandow@bloomberg.net

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