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Europe wrangles over bailout fund contributions

Europe wrangles over bailout fund contributions

Germany's finance minister has dampened the hopes of poorer eurozone countries that their contributions to the region's bailout fund will be lowered.
Wolfgang Schaeuble said Monday the eurozone had an established formula and it shouldn't be constantly changed.
The 17 countries that use the euro have agreed to increase the lending capacity of the bailout fund to (EURO)440 billion ($621.7 billion) from (EURO)250 billion.
Its successor, which will come into force in 2013, will be able to lend (EURO)500 billion to countries in financial difficulties.
However, several poorer countries such as Slovakia and Malta are unhappy with the formula used to calculate contributions, because they say they end up paying a higher proportion of their national income than richer nations.