European bailout fund blunder as France and Germany argue over bondholder losses

Note: This section contains information in English only.
Source: Bloomberg
© Scanpix/Reuters

According to officials involved in negotiations, EU efforts to accelerate the creation of permanent bailout fund have stumbled as Germany and France cannot agree about conditions to make bondholders accept losses. FMs did not succeed to link divisions of European Stability Mechanism, lowering the probability to activate €500 bn firewall in July 2012. 

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