With a banking licence, the ESM - which is due to replace the current temporary baliout fund, the EFSF - could borrow cash from the European Central Bank and buy virtually unlimited amounts of debt issued by troubled eurozone states.
The rules of the European Stability Mechanism do not foresee a banking license to allow refinancing at the European Central Bank, the Finance Ministry in Berlin said. The ministry isn’t holding talks on the topic, nor are secret meetings taking place on such proposals, it added.
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