Eurozone rescue fund sufficient – French minister

French Economy Minister Christine Lagarde

French Economy Minister Christine Lagarde

The present size of the eurozone fund is sufficient to take care of future crises, said French Economy Minister Christine Lagarde on Sunday.

Germany and France wants other eurozone leaders to agree to a ‘comprehensive package’ that proposes changes to the €440 billion European Financial Stability Facility (EFSF) and aims to stop the year long EU debt crisis.

In an interview with French television channel France 5, Lagarde said: “We have enough punch to respond in case of emergency, which is sufficient if we develop it, and if we ensure that it can all be mobilised”.

EU members are looking at means to give the EFSF more flexibility on how to use the money and increase its effective lending capacity.

France and Germany wants the fund’s mandate to go beyond crisis management measures and include potentially controversial measures to increase the competitiveness of the bloc, including minimum corporate tax rates and fixing ceilings on debt levels included in national laws.

“It’s not enough to have the same currency, we have to have concordant, coherent policies that bring us towards a more competitive and innovative Europe”, Lagarde said.

She added that euro is a strong currency that foreign investors and central banks believe in, but the currency should not become so strong that it hurts the regions competitiveness.

“I assure you that in the euro zone we are solid and politically determined to defend the zone and the currency”, she added.

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