30 Jan 2012

EFSF disagreement not helping crisis

11:26 am on 30 January 2012

The delay in sorting out out Greece has highlighted a top level disagreement over Europe's firewall, to stem the spread of the debt crisis.

France and Germany disagree over the importance of the European Financial Stability Fund.

Germany says the firewall alone won't solve the crisis and bigger problems, like Greece, should be figured out first.

France says the firewall should be as large as possible.

EFSF chief executive Klaus Regling insists the bailout fund, which is the biggest part of the firewall, does have the necessary firepower, despite a recent downgrade by Standard & Poors.

Mr Regling says the 440 billion euro fund is 90% uncommitted at this time, which should be enough.