European finance ministers looked unlikely to reach a target of boosting IMF resources by 200 billion euros to ward off the debt crisis on Monday, after Britain said it would not take part in a plan aimed specifically at helping the euro zone.

In a three-hour conference call, ministers also assessed plans for tighter euro zone fiscal rules — a new 'fiscal compact' — that policymakers hope will insulate the 17-country currency zone against a repeat of the two-year debt crisis.

Treasury sources said Britain had made it clear on the call it would not participate in the plan to increase IMF resources by up to 200 billion euros, with 150 billion of coming from euro zone central banks.

"We were clear that we would not be making a contribution," one treasury source said, while another added that there was "no agreement on the 200 billion" euro funding boost.

While Sweden said it would take part, with conditions, Britain's decision to stay on the sidelines means it is unlikely the headline goal will be reached. Ministers had set an informal deadline of Monday to arrive at the 200 billion figure, which was agreed by EU leaders at a summit on Dec. 8-9.

The increase in IMF resources is seen as one pillar in a multi-pronged strategy to strengthen the euro zone's fire-fighting capability and build better defenses for the future. Another pillar is making the euro zone's existing bailout fund, the EFSF, more flexible in how it tackles the debt debacle.



Speaking during testimony to the European Parliament, ECB President Mario Draghi praised EU efforts to forge a new 'fiscal compact' as a solid base for responding to the crisis, and called the euro an "irreversible" project.

"I have no doubt whatsoever about the strength of the euro, about its permanence, about its irreversibility," he said. "You have a lot of people, especially outside the euro area, who really spend a lot of time in what I think is morbid speculation, namely, what happens if? And they all have catastrophic scenarios for the euro area."

On the EU drive for tighter fiscal rules, he said: "Enshrining strict rules in primary legislation, making them enforceable by the European Court of Justice: all of this should contribute to making public finances in the euro area credibly robust. The ECB welcomes this outcome."

Draghi spoke as EU ministers were still locked on their conference call, with discussions also set to examine issues surrounding the euro zone's permanent bailout fund, with Finland unhappy about plans to weaken the unanimity rule governing how the European Stability Mechanism is run.

Finland's opposition, if not overcome, could scupper efforts to bring the ESM into force in July 2012, a year earlier than planned, to step up crisis-fighting efforts.

IMF Resources

But the primary focus of debate was about the increase in IMF resources, with concerns growing that the euro zone's temporary bailout mechanism, the EFSF, is insufficient to handle the debt problems and with too long to wait until the permanent mechanism is up and running.

While EU leaders agreed at their last summit on the desire to boost IMF resources, there are doubts about whether the scheme will work, with not just Britain unenthusiastic, but the United States and Germany's Bundesbank too.

"Washington cannot make bilateral loans available to the IMF without Congress approving it," German Finance Minister Wolfgang Schaeuble told German radio. "There's no chance of that and the American government has always made that clear."

"There's no chance of that and the American government has always made that clear."

To the frogs...you created this mess, now you own it.

We have NO interest in helping you....AGAIN.

it seems strange that Spain and Italy will contribute when they are in the shit financially already

perhaps they are thinking 'if we pay in we can get billions more out'

Britain simply cannot afford to contribute. 30 years of economic mismanagement has to be paid for. The price of that is 14 years of ever tightening real austerity. To borrow money to loan to the Euro zone would send us into a deepening spiral of higher interests rates and lower growth and less taxable income. The Euro zone is just going to have to do what Britain is doing; sort out its own economic mess.

Dewi_Sant wrote:

it seems strange that Spain and Italy will contribute when they are in the shit financially already

perhaps they are thinking 'if we pay in we can get billions more out'

It is economic madness. The lunatics have finally taken over the asylum.

VAVD wrote:

European finance ministers looked unlikely to reach a target of boosting IMF resources by 200 billion euros to ward off the debt crisis on Monday, after Britain said it would not take part in a plan aimed specifically at helping the euro zone.

In a three-hour conference call, ministers also assessed plans for tighter euro zone fiscal rules — a new 'fiscal compact' — that policymakers hope will insulate the 17-country currency zone against a repeat of the two-year debt crisis.

Treasury sources said Britain had made it clear on the call it would not participate in the plan to increase IMF resources by up to 200 billion euros, with 150 billion of coming from euro zone central banks.

"We were clear that we would not be making a contribution," one treasury source said, while another added that there was "no agreement on the 200 billion" euro funding boost.

While Sweden said it would take part, with conditions, Britain's decision to stay on the sidelines means it is unlikely the headline goal will be reached. Ministers had set an informal deadline of Monday to arrive at the 200 billion figure, which was agreed by EU leaders at a summit on Dec. 8-9.

The increase in IMF resources is seen as one pillar in a multi-pronged strategy to strengthen the euro zone's fire-fighting capability and build better defenses for the future. Another pillar is making the euro zone's existing bailout fund, the EFSF, more flexible in how it tackles the debt debacle.



Speaking during testimony to the European Parliament, ECB President Mario Draghi praised EU efforts to forge a new 'fiscal compact' as a solid base for responding to the crisis, and called the euro an "irreversible" project.

"I have no doubt whatsoever about the strength of the euro, about its permanence, about its irreversibility," he said. "You have a lot of people, especially outside the euro area, who really spend a lot of time in what I think is morbid speculation, namely, what happens if? And they all have catastrophic scenarios for the euro area."

On the EU drive for tighter fiscal rules, he said: "Enshrining strict rules in primary legislation, making them enforceable by the European Court of Justice: all of this should contribute to making public finances in the euro area credibly robust. The ECB welcomes this outcome."

Draghi spoke as EU ministers were still locked on their conference call, with discussions also set to examine issues surrounding the euro zone's permanent bailout fund, with Finland unhappy about plans to weaken the unanimity rule governing how the European Stability Mechanism is run.

Finland's opposition, if not overcome, could scupper efforts to bring the ESM into force in July 2012, a year earlier than planned, to step up crisis-fighting efforts.

IMF Resources

But the primary focus of debate was about the increase in IMF resources, with concerns growing that the euro zone's temporary bailout mechanism, the EFSF, is insufficient to handle the debt problems and with too long to wait until the permanent mechanism is up and running.

While EU leaders agreed at their last summit on the desire to boost IMF resources, there are doubts about whether the scheme will work, with not just Britain unenthusiastic, but the United States and Germany's Bundesbank too.

"Washington cannot make bilateral loans available to the IMF without Congress approving it," German Finance Minister Wolfgang Schaeuble told German radio. "There's no chance of that and the American government has always made that clear."

Sorry, you got the "chiasse" ?



It's time to look for your Christmas gifts !

Meanwhile as regards to the fundamental reason of current crisis :

www.aspousa.org . . .

And the collapsing United Swines of Allah still has a zero volume based gas tax, a totally grostesque vehicle fleet, and a crumbling infrastructure, LOL !

(not even mentionning its degenerated population of illiterate "protestant" airhead pigs of course)

European finance ministers looked unlikely to reach a target of boosting IMF resources by 200 billion euros to ward off the debt crisis on Monday, after Britain said it would not take part in a plan aimed specifically at helping the euro zone.

Jesus Christ !!!! Another debt crisis !!!! What the fuck is going on in Europe !!!! Enough is enough. Time to nuke the worthless bastards. They're going Muslim anyway.

How dare we opt out of being the second largest contributor using money we dont have to support someone elses mess.

We should be bending over backwards to support those nice, polite French people.

The Euro is fabulous and makes great replacement monopoly money

Limeys big mouth .... :

www.zerohedge.com . . .

or :

www.powerswitch.org.uk . . .

The humane thing would be to put the leetle froggies out of their misery.

But then, we wouldn't get to watch them suffer.