08 SEP 2010

Money Control

Germany will not support prolonging rescue mechanisms to underpin the euro indefinitely because too much help would damage the European single currency, Chancellor Angela Merkel said on Tuesday.

Germany, which has shouldered the biggest share of risks in a bailout of Greece and a 750 billion euro package assembled to protect the euro currency, has been pushing for tougher budget rules to avoid a repeat of the euro debt crisis in future.

"The current crisis mechanisms have time limits. Germany will not support prolonging them willy-nilly because someone says, 'now that we have such a great rescue mechanism it can just carry on like that for ever'," Merkel said in Riga.

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