G20 inches towards bigger eurozone bailout fund

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G20 inches towards bigger eurozone bailout fund

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Finance Minister and central bankers from the G20 are meeting in Mexico City with the eurozone crisis top of the agenda.

The world’s leading economies want to prevent further fallout from the debt crisis and they’re demanding Europe increase its war chest to 750-billion euro first before other G20 countries will contribute.

Brazil’s Finance Minister Guido Mantenga said: “the emerging markets will only help once two conditions are met. Firstly they must reinforce the firewall, which means doing more than what they’re doing with the European Stability Fund. On top of that they must reform the International Monetary Fund.”

EU leaders have been praised for the steps they’ve taken to tackle the debt crisis by the US Treasury Secretary, Timothy Geithner.

He also added that he was not concerned about the IMF not having enough resources although the subject is also due for discussion.

If the G20 does agree to booost the eurozone’s treasure chest Germany’s support will be crucial.

Angela Merkel has indicated that she is willing to talk about it but she has also made it clear that she sees no reason to raise the bailout fund for now because the situation in financial markets has been improving.