Europe's new bailout fund may be authorized to provide credit lines amounting to as much as 10 percent of a country's economy, a draft document shows. Some German lawmakers said that would put an intolerable burden on taxpayers.
The enhanced fund, called the European Financial Stability Facility, may be able to offer loans to countries "before they face difficulties raising funds" in bond markets, the draft guidelines obtained by Bloomberg News show. The document also says that the EFSF, which is authorized to buy government debt, should buy no more bonds in the primary market than private investors.
Lawmakers from German Chancellor Angela Merkel's coalition said the changes, if approved at an Oct. 23 European Union summit in Brussels, may shift intolerable burdens to German taxpayers.
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