Germany rejects creation of new bailout fund

Germany has rejected the idea of setting up a special fund to bail out eurozone countries that run into budget trouble like is currently happening in Greece.

Finance Ministry spokesman Michael Offer said Monday that a European Monetary Fund would not help a case like that in Greece. He said there was "no way around" painful austerity measures being pushed through by the Greek government.

Offer said Greece must reduce its budget deficit by four percentage points this year and bring it down to 3 percent of gross domestic product by 2012. That is in line with requirements for participation in the common currency.

The trouble with Greece has plunged euro into the worst turmoil it has ever seen. Sixteen European Union countries use the common currency.

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