Euro Region Needs Bigger Backstop, Rostowski Says

The euro region needs a financial backstop of as much as 3 trillion euros ($4 trillion), Polish Finance Minister Jacek Rostowski told Germany’s Handelsblatt newspaper.

A lending capacity of 1 trillion euros for the European Financial Stability Facility isn’t enough to impress investors, he said.

A 50 percent reduction of large euro members’ outstanding debt wouldn’t be possible without pushing the countries’ banking systems into insolvency, Rostowski, who chairs meetings of European Union finance ministers, also told the newspaper.

Deeper and faster integration of the 17-member euro region must not lead to a division of the 27-member EU, he said.

(Corrects to say trillion in first paragraph. For more debt-crisis news, see EXT4.)
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