Eurozone countries will boost the lending capacity and flexibility of their bailout fund, European Commissioner for Economic and Financial Affairs Olli Rehn said on Jan. 28. He, however, noted that the region’s governments will not increase the fund’s existing euro440 billion (USD599 billion) in guarantees.
“Our goal is to reinforce the effective lending capacity of the [fund] and widen the scope of its activities, not to increase the headline figure,” Rehn said in an interview with The Wall Street Journal on the sidelines of the World Economic Forum in Davos.
Meanwhile, German Chancellor Angela Merkel is expected to put forward a “pact for competitiveness” to help harmonize the policies of eurozone states. The plan is seen to introduce an economic government in the eurozone, Spiegel reports.