German SPD Pressures Schaeuble to Resist Bank Recapitalization
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Germany’s Social Democrats, the prospective future coalition partner of Chancellor Angela Merkel’s Christian Democrats, are putting pressure on the government to toughen resistance to direct recapitalization of banks from the euro region bailout fund.
Speaking to reporters in Luxembourg yesterday, Finance Minister Wolfgang Schaeuble said “a lot of work convincing certain people in Berlin” will be needed to get legal changes quickly that would pave the way for the direct recapitalization of lenders through the area’s financial backstop, the European Stability Mechanism.