Could Europe's Rescue Fund Become a Big Bank?

Austria's central banker ponders a new way to fight the crisis
Ewald Nowotny, governor of Austria's central bank and European Central Bank governing council member Photograph by Oliver Bunic/Bloomberg

European Central Bank leaders have repeatedly dismissed suggestions that the central bank lend money to the euro zone’s permanent rescue fund. Now, with Spain sliding toward a sovereign bailout, the idea has been revived by a member of the ECB’s own governing council.

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