The German parliament approved a bill to raise funds for the European Financial Stability Facility (EFSF). The EFSF was created by the Euro Zone to support member states that may face fiscal crises and to prevent the ongoing fiscal crises of Greece and Italy from affecting the rest of Europe. Currently, a few countries like Germany, France, Netherland, and Finland have provided loans to countries facing financial difficulties and they plan to raise additional funds of up to €440 billion to €780 billion.
Raising these funds could prevent EU member states in fiscal crises from defaulting on short term loans, but many fear that even raising these funds may be vastly insufficient to overcome the current situation. Raising the funds of the EFSF may effect the Korean economy if European countries withdraw their currency reserves in Korea to meet demands at home.