Germany adds support for Euro

Germany said on Friday it stood ready, just like the European Central Bank, to do all in its power to ensure the survival of the euro but it reiterated its opposition to granting a banking license to the euro zone’s bailout funds.

“The president of the ECB said the ECB will do all that is necessary to maintain the euro and the German government will do all that is politically required to maintain the euro,” government spokesman Georg Streiter told a news briefing.

“The ECB makes its contribution and the German government makes its contribution,” Streiter added.

Finance ministry spokeswoman Marianne Kothe reiterated Berlin’s view that the EU treaty does not allow the EFSF bailout fund to receive a banking license – one idea mooted to relieve market pressure on heavily indebted states such as Spain.

Kothe said Finance Minister Wolfgang Schaeuble would issue a statement later on Friday about the general situation in the euro zone, where yields on Spanish and Italian debt have soared this week amid resumed fears for the future of the euro zone.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza