G20 tells Eurozone: stump up
THE G20 economies have told Europe it must stump up extra cash to fight its debt crisis if it wants more help from the rest of the world, piling pressure on Germany to drop its opposition to a bigger European bailout fund.
Eurozone countries pledged yesterday at a Group of 20 meeting of finance leaders to reassess the strength of their bailout fund in March, which could clear the way for other G20 countries to contribute more funds via the International Monetary Fund.
“This will provide an essential input in our ongoing consideration to mobilise resources to the IMF,” the G20 said in the final communique of the two-day meeting .
Germany, as Europe’s largest economy, came under intense pressure to support enlarging the region’s war chest. But facing political hurdles at home, it has sent conflicting signals over whether it was ready to move.
Chancellor George Osborne left no doubt the G20 requires a clear Euro-zone commitment.
“We have to see the colour of the Eurozone’s money first – and, quite frankly, that hasn’t happened. Until it does, there’s no question of extra IMF money from Britain or probably anyone else,” he said.
The G20 is racing to line up massive international resources worth nearly $2 trillion (£1.25 trillion) possibly by late April.