Merkel Says No Taboos on Euro Reform Steps to Calm Market

Chancellor Angela Merkel said there should be “no taboos” in plans to rescue Europe’s single currency and euro-area leaders must step up their efforts to convince financial markets that banks will be shielded.

Merkel said she welcomed recommendations made yesterday by the European Commission, the European Union’s executive body, which included allowing the permanent bailout fund to channel aid directly to banks. Speaking in the Baltic Sea coast city of Stralsund today, the chancellor signaled the EU could work more closely to protect its banks, saying there are “possibilities for greater cooperation.”