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Fricke Says He Expects First-Loss Solution for EFSF Enhancement

German Free Democratic Party budget spokesman Otto Fricke said “things point in the direction of a first-loss model” for the enhancement of the European Financial Stability Facilty that aims to boost the backstop’s firepower. Fricke made his comments to reporters today in Berlin, saying he won this impression after briefings by German Finance Minister Wolfgang Schaeuble today and yesterday in Berlin.

Fricke also said he’s not certain that lawmakers can back the changes to the EFSF this week because so-called guidelines related to the overhaul have not yet been received and parliament needs time to discuss the proposals.

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