Upgrading the EFSF The Euro Rescue Fund Needs More Powers

The German government is rejecting calls to allow the euro rescue fund, the EFSF, to bail out troubled banks directly. In doing so, Berlin is only deceiving itself -- and endangering the euro.
Demonstrators in Spain (July 2011). The fate of the banks and the euro are inextricably linked.

Demonstrators in Spain (July 2011). The fate of the banks and the euro are inextricably linked.

Foto: PAUL HANNA/ REUTERS