BRUSSELS, Dec 14 (Reuters) – Germany rebuffed calls for more
financial risk-sharing in the euro zone on Friday, rejecting a
proposal for a fund to help debt-laden countries cope with
economic shocks and leaving open who would pay to wind down
With an eye on a general election next year, Chancellor
Angela Merkel made EU officials drop any mention of a
shock-absorber fund, backed by France and southern European
states, from the conclusions of a two-day European Union summit.
She also resisted efforts by French President Francois
Hollande and Italy to loosen EU budget discipline rules by
exempting public investment when calculating national deficits.
The European Central Bank also rejected any let-out clauses
from fiscal consolidation.
“Differentiating between good and bad deficits makes no
sense,” ECB executive board member Joerg Asmussen told Reuters.
“Each deficit has to be refinanced on the capital markets. One
should not touch the rules of the (EU) Stability Pact.”