BERLIN, Sept 24 Germany's finance ministry said
on Monday that talk of the euro zone's permanent bailout fund
being leveraged to 2 trillion euros via private sector
involvement was not realistic, adding that any discussion of
precise figures was "purely abstract".
Ministry spokesman Martin Kotthaus said there were talks
going on in Brussels about leveraging the capacity of the
European Stability Mechanism (ESM) in the same way as its
predecessor, the European Financial Stability Fund (EFSF).
But, asked about a report in Spiegel magazine that the ESM's
capacity could be leveraged to 2 trillion euros, he said this
"It is not feasible to talk about figures at present," he
told reporters. "It is purely abstract."
Kotthaus said Germany's government and parliament backed the
idea of boosting ESM capacity via "private capital participation
in loans or other instruments for states which require them"
just as they had supported such instruments for the EFSF.
The ESM is expected to come into force on Oct. 8 with a
firepower of 500 billion euros.
Kotthaus said he had no information about a separate Spiegel
report on a 20 billion euro hole in Greece's state budget.