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Eurozone fund head suggests new crisis reserve

Posted July 13

— The head of the eurozone's rescue fund is suggesting the creation of a new crisis reserve that could be used to help member countries in a "sudden, severe crisis."

Klaus Regling, who heads the European Stability Mechanism, pointed in an interview with Thursday's edition of German business daily Handelsblatt to the example of U.S. "rainy day funds" financed by states.

He said that "we need a limited joint fiscal capacity in the eurozone to be able to help individual member states in the case of a sudden, severe crisis."

Asked how large the pot should be, Regling was quoted as saying that 1 to 2 percent of eurozone gross domestic product should be enough — or about 100 to 200 billion euros ($114 to 228 million).

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