Objections to Greek Bailout Create Problems for EFSF

Changes to the EU's bailout fund, the European Financial Stability Facility (EFSF), have been tied to a second bailout for Greece — something five eurozone states, led by Finland, are reluctant to do. Finland is demanding collateral from Greece, in the form of cash, before it approves the bailout, and thus the EFSF changes. This leaves Germany with three unpalatable choices: Let the bailout of Greece fail, cover the difference itself and hope that no other state opts out or give in and allow a collateral deal to go through.