Diplomats: Regling will head ESM bailout fund

By DON MELVIN,Associated Press Updated at 2012-07-10 00:05:35 +0000


BRUSSELS (AP) — Diplomats say that Klaus Regling, a German economist who currently heads the temporary EU bailout fund, has been chosen to head the European Stability Mechanism — the permanent bailout fund meant to head off instability in the eurozone.

Finance ministers from the 17 countries that use the euro as their official currency are meeting early Tuesday to try to hammer out a bailout agreement for Spain and take steps to ensure the stability of the currency.

Regling, 61, will take charge of a bailout fund mean to reassure markets that the European Union will stand behind its weaker members.