Euro €1trn rescue target at risk; Bondholders get partial guarantees

Eurozone finance ministers agreed to allow the EFSF to fund partial protection on government bonds, but plans to extend overall funding to the €1trn target were dealt a blow last night.

Eurozone finance ministers held talks late last night to try and agree a deal on bolstering the European Financial Stability Facility(EFSF). However, Eurogroup chief Jean-Claude Juncker said the €1trn target was unlikely to be hit, the BBC reports. Juncker said the expansion of the EFSF's firepower would nonetheless be "substantial". "We haven't lowered our ambitions but the conditions have changed, so it will probably not be €1trn but less." European leaders want to increase the EFSF from €440bn in case large economies such as Italy or Spain need a bailout. Ministers also ag...