Spain Could Be Beneficiary of Solidarity Fund, Merkel Says

German Chancellor Angela Merkel cited Spain as a potential beneficiary of a proposed European fund to channel cash to countries that pledge to spur competitiveness.

European governments that sign up to policy measures to curb debt while improving vocational training and boosting research and development spending would be eligible recipients under the proposal discussed by European Union leaders at a two- day meeting in Brussels that ended today.

“All this has to be clarified in detail and worked on over the next six months,” Merkel said. The chancellor told reporters earlier today she envisages a pool of “around 10 ($13 billion) or 15 or 20 billion euros,” or around 0.2 percent of the euro region’s gross domestic product.

The so-called solidarity fund could be fed by national contributions such as proceeds from a financial transaction tax or some of the European Union’s so-called structural funds, Merkel said.

To contact the reporter on this story: Rainer Buergin in Berlin at rbuergin1@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

Bloomberg reserves the right to edit or 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.