Germany Wants Investors on the Hook If Euro Members Get Aid
- ESM requests would trigger automatic maturity extensions
- Part of broader German plan to limit public borrowing, risks
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Chancellor Angela Merkel’s government is pushing for new rules forcing a contribution from investors when cash-strapped euro member states ask for assistance from the bloc’s financial backstop.
Germany is looking at measures including an automatic maturity extension for bonds of nations that apply for European Stability Mechanism aid, the Finance Ministry said in an e-mailed response to questions by Bloomberg News. The plan, part of Germany’s push to limit public borrowing and European Union banks’ exposure to sovereigns, is in an early stage and can’t be implemented by Germany alone, the ministry said.