Two years after it asked for $500 billion to fight off a global slump the International Monetary Fund’s call for a further $600 billion to limit the fallout from Europe’s debt crisis seems to be falling on deaf ears.
Europe has already pledged to inject $200 billion, but it not clear who will pay what.
In principle Brussels backs the fund’s boost. European Commission spokesman Amadeu Altafaj said: “We strongly support a substantial increase in IMF resources. First because this would send a very clear signal to the markets, as it would enhance the capacity of the IMF to fulfil its unique systemic responsibilities in support of all its members and I am talking globally, not only in terms of European members.”
At last November’s G20 summit, the world’s top economies did agree to boost the IMF’s war chest, but the US, Canada, Japan and South Korea have said Europe must put up more of its own money and more cash from the UK would be politically difficult for Prime Minister David Cameron.