German finance minister Wolfgang Schäuble denied that the Eurozone is considering plans to boost the firepower of the European Financial Stability Facility (EFSF) by a factor of five so that it could deploy €2-€3 trillion.
Asked if an increase could be pushed through on Thursday when the German parliament votes on the smaller increase to the EFSF agreed in July, he said: “No, that is clear... We do not intend to increase it.”
But markets are still awash with rumours that a plan to create a bailout facility in the trillions is afoot.
Some economists, however, say that it wouldn’t save the region anyway. Capital Economics analysts said: “Overall, the reported proposals are perhaps the minimum required to buy some time in the event of a Greek default. But, just like the many previous bailout packages, they would not be a permanent solution.”