Chancellor Angela Merkel of Germany (NYSE:EWG) has canceled a planned speech to parliament in Berlin tomorrow. Proposals to leverage the European Financial Stability Facility to give it more firepower are in deadlock, three German lawmakers said.
The role of the European Central Bank has France (NYSE:EWQ) and Germany (NYSE:EWG) at odds about how best to tackle Europe’s debt crisis. Because of the disagreements, German lawmakers said today they will not sign off on proposals to enhance the firepower of the EFSF.
“France favors creating a bank out of the EFSF, boosting its financial clout with backing from the ECB, a proposal that Germany rejects, Finance Minister Wolfgang Schaeuble told lawmakers in Berlin this week. French Prime Minister Francois Fillon said today that the euro region should agree to use leverage to make the region’s financial support fund ‘massive’,” according to Bloomberg.
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