Tatiana Dementieva
Forex news, euro rate. Germany is planning to allocate 11 bln. euro as quickly as possible in order to provide the necessary capital for the European Stability Mechanism (ESM), which is going to replace the European Instrument for Financial Stability (EIFS) this summer. This statement has been announced to German parliament by the country’s Chancellor Angela Merkel, as informed by ITAR-TASS.
Frau Merkel stated that 11 bln. euro will be allocated to ESM already in 2012. She said that the second half (of equal value) of the contribution would be allocated in 2013. The Chancellor stated that German government would maintain the course of common European currency stabilization.
"Europe will collapse if euro collapses, and Europe will win if euro wins," she said. German Chancellor stated that the process of creating a union to support the stability of common European currency was to be continued.
She admitted that there were constant risks connected with providing support to Greece. "100 percent certainty of success cannot be guaranteed", commented Frau Merkel of the point, having admitted that Greece would have to walk a long way to economic stability in the country.
Meanwhile, German Chancellor asked Greek government to hold thorough structural economic reforms. She claimed that the commission would control the compliance of commitments by Athens.
German government has eventually approved the second rescue package to Greece, despite the growing concern of investors. Reuters informs that Greece will implement harsh austerity measures and will remain in euro zone.
Tatiana Dementieva
