CORRECTED – UPDATE 1-German finmin hopes markets will calm on Irish deal

(Corrects bailout currency in first paragraph to euros)

* Schaeuble hopes Ireland aid will restore calm to markets

* Says Portugal on track with consolidation plan

(Adds details, quotes)

BERLIN, Nov 29 (BestGrowthStock) – Germany hopes the 85 billion euro
aid package agreed for Ireland will calm euro zone financial
markets and there is no need to increase the size of the euro
zone’s rescue funds, Finance Minister Wolfgang Schaeuble said on
Monday.

Schaeuble also said Portugal was on track to implement a
tough plan of fiscal austerity that should allow it to avoid a
bailout.

“We are hopeful that a little more calm and a reality will
come back to the markets’ valuations,” told German radio station
Deutschlandfunk.

Asked if consideration had been given to topping up a 750
billion safety net for the euro zone, Schaeuble said: “No, there
is no reason for that.”

He also said Germany had the unanimous support of EU members
in its push for creditors to participate in the cost of future
bailouts after 2013.

On Sunday, the EU, anxious to prevent market contagion
engulfing Portugal and Spain, approved Ireland’s rescue plan and
outlined a permanent system to resolve a debt crisis, in which
investors could gradually share the cost of any future default.

“Portugal is currently under pressure and therefore it is
necessary that Portugal implements the measures it has
announced,” Schaeuble said.

“We have talked to Portugal intensively on all levels and
that will be continued. There is close contact. Portugal has
taken a lot of measures and is on a good path.”

European officials have been at pains to play down the links
between Ireland and Portugal, widely seen as the next euro zone
“domino” at risk. Troubles in Portugal could spread quickly to
its larger neighbour Spain because of their close economic ties.

Portugal and Spain’s borrowing costs also rose to near
record highs last week but still remain much lower than those
which have forced Ireland to seek a rescue.

As part of the permanent crisis-resolution mechanism, which
the 27 EU finance ministers approved in a broad outline, private
bondholders could be made to share the burden of restructuring
of a euro zone country’s sovereign debt bought after 2013.

That was based on a joint proposal by France and Germany and
would be subject to a case-by-case evaluation without any
automaticity. Some of its EU partners, however, have criticised
Germany for bringing the issue up at this point.

“We have said there must be a participation of creditors
because over the long-term … we can’t have taxpayers alone
carrying the risk,” Schaeuble said.

“It was important that we reached a unanimous deal — many
didn’t think that was possible and yesterday we did it.”
(Reporting by Annika Breidthardt, Erik Kirschbaum and Paul
Carrel; editing by Patrick Graham)

CORRECTED – UPDATE 1-German finmin hopes markets will calm on Irish deal