22.9.11

How Europe can get more bang for its bailout buck

By Peter Thal Larsen.
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Europe’s bailout fund is no longer fit for purpose. As the euro zone’s sovereign debt crisis has spread to Spain and Italy, the 440 billion euro fund looks increasingly puny. Expanding it is politically tricky. But using the EFSF’s remaining firepower to guarantee new sovereign debt would give it more clout — and buy some time.

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