Packed agenda at Euro FinMin meeting

The Irish economic bailout tops a packed agenda as Eurozone finance ministers meet for two days of talks in Brussels.

They are expected to formally approve an 85-billion euro aid package for Ireland. But there is less agreement on the wider European rescue fund.

Some, like Belgian finance minister Didier Reynders, want to increase the size of the permanent bailout fund to be introduced in 2013. He told reporters that only once the permanent fund has been dealt with, can they look at the existing, temporary facility.

Germany though opposes a bigger bailout fund, aware that German taxpayers would shoulder a bigger share of the burden. Berlin is also against common eurozone bonds proposed by Luxembourg and Italy.

Angela Merkel did however give a strong defence of the euro currency, saying:

“Europe needs the euro. Germany has benefited immensely from the euro. It is the basis

for our exports. And that’s why we’ll do anything to have a strong and safe euro.”

Some experts believe the euro zone will not survive in its present form if the debt crisis worsens and the IMF has urged the European Central Bank to step up the purchase of government bonds to bolster the beleaguered currency.

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