"Germany at war" to fulfill the RIBBENTROP - MOLOTOV pact provisions - European officials have confirmed that discussions are afoot to boost the eurozone bail-out fund's firepower as part of a grand plan to contain the region's sovereign debt crisis in Greece. Confirmation of the talks, however, sparked outrage in Germany, where opposition politicians threatened to derail the plans by voting against a key amendment to the bail-out fund this Thursday. The head of Germany's constitutional court also piled on the pressure by warning the government not to circumvent the law "by the back door". Despite the wrangling in Germany, markets across Europe staggered back to life on hopes that the crisis could be contained and the recovery restored. In the UK, the FTSE 100 rose 0.4pc to 5,089.37 after £78bn was wiped off shares last week. In France, the CAC 40 rose 1.75pc, and Germany's DAX recovered almost 4pc. Policymakers in Europe are working on a three-pronged plan to ringfence the euro crisis around Greece. Under the proposal, banks across the continent would be recapitalised with tens of billions of euros, the €440bn European Financial Stability Facility (EFSF) would be "leveraged up" through the European Central Bank (ECB) to provide €2 trillion of firepower, and Greece would be subjected to a managed default on 50pc of its debt but stay in the euro. Officials hope the move would restore confidence in Spain and Italy and calm nervous bond markets.So far, Rusia took over the eurozone energy fields via the euro, that was implemented for this reason only, otherwise making no sense ...ca you imagine how hard would have been to take over the european economies one by one through their individual currencies ?
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German politicians told the Guardian of their dismay at reports following the last weekend's meeting of the International Monetary Fund about beefing up the existing bailout fund – known as the European Financial Stability Facility.
Frank Schäffler, a politician from North Rhein-Westphalia, said any scheme to bolster the fund from its existing €440m capacity would be a "catastrophic development" that he feared would lead to inflation.
"It must be stopped," he said in a phone interview. Schäffler is from the pro-business Free Democratic Party (FDP), which rules in coalition with the Christian Democratic Union (CDU) of the chancellor, Angela Merkel.
Germany's finance minister, Wolfgang Schäuble, appeared to downplay any attempt to bolster the EFSF. "We do not intend to increase it," he said in a television interview.
His remarks came after European markets closed and after France's CAC40 closed 1.8% higher and the Dax in Germany rose 2.9% – but not after moving 6% from peak to trough. Gains in London were more muted with the FTSE index ending 0.4% higher at 5,089.37, while Wall Street was gyrating.
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