UPDATE 1-German FinMin sees no need to boost EFSF

* German FinMin calls Barroso’s proposal “isolated”

* FinMin says proposal only makes matters more complicated

* Says Portugal doesn’t want or need bailout

* German govt in agreement there is no need to act now

(Adds details)

BERLIN, Jan 17 (BestGrowthStock) – Germany again ruled out
bolstering the size of the EU bailout fund as proposed last week
by European Commission President Jose Manuel Barroso.

“With such isolated approaches, the situation doesn’t get
any easier, it only gets more complicated,” Finance Minister
Wolfgang Schaeuble told German radio Deutschlandfunk on Monday
prior to a meeting of euro zone finance ministers.

“I don’t know what moved him to propose that on the day that
Portugal had to go to the markets — after all I believe he was
at one time prime minister of Portugal.”

Last Wednesday, Barroso called for a summit decision in
February on increasing the effective lending capacity of the
European Financial Stability Facility (EFSF) and making it more
flexible. [ID:nLDE70B1EJ] [ID:nWEA0908]

“Portugal doesn’t want or need a bailout at all. There’s
enough funds for Ireland, and the rest is speculation that is
not being stirred up by anyone,” Schaeuble said.

“The rules agreed on remain in force and whoever wants to
change them … has to get the laws changed by the German
Bundestag — just as with the other national parliaments. This
should be considered more often by those in charge in Brussels.”

He also dismissed media reports that there was no clear
position on the matter within Chancellor Angela Merkel’s
centre-right government, and denied that French President
Nicolas Sarkozy was in favour of an increase in the fund.

“That’s naturally the usual incorrect reporting — we are
all in agreement that there is no need to act at present… and
Chancellor Merkel and President Sarkozy have said very clearly
they oppose an increase in the bailout fund,” he said.

(Reporting by Christiaan Hetzner; Editing by John
Stonestreet)