Jo Couzens and Rob Cole, Sky News Online
European finance chiefs are holding emergency talks to find a way to restore the euro’s credibility before the world financial markets reopen.
The aim is to convince speculators that the debt crisis in Greece will not spread to other struggling single currency countries such as Spain and Portugal.
Finance ministers want to set up a European-style International Monetary Fund which would act as a crisis fund for debt-hit countries in the eurozone.
Chancellor Alistair Darling, in Brussels for the talks despite the political limbo in the UK, has insisted Britain will not be making a contribution to the bail-out fund.
However, he did signal support for doubling an existing pot of EU budget cash for emergency loans to member states facing deficit problems.
„So far as Europe is concerned there is a separate proposal to make available help to eurogroup members as they do to non-eurogroup members like Hungary and Romania,” Mr Darling said.
„Subject to the right safeguards, and IMF involvement we could support that” he said.
„But what we won’t do is provide support for the euro – that has to come from those countries that use the euro.”
The IMF executive board has now approved a 30bn euro loan for Greece.
Another plan being discussed in Brussels would allow the European Commission to borrow on behalf of a member state in financial trouble, using the EU budget as collateral.
French President Nicolas Sarkozy and Italian PM Silvio Berlusconi pulled out of World War II commemorations in Moscow to bolster the efforts.
Despite Mr Darling’s opposition to a large bail-out fund that would expose Britain to the risk of massive hand-outs to debt defaulters, he is obliged to consult his current Tory shadow George Osborne and his Lib Dem counterpart Vince Cable under the courtesies of hung parliament etiquette.
Any plan must be approved by a majority of all 27 EU countries, represented by their finance ministers.
Leaders of the 16 countries that use the single currency approved on Friday £95bn loan package to Greece, backed by the EU and IMF.
Athens was rocked by riots last week after Greece pushed through a series of austerity cuts aimed at cutting its massive budget deficit.
Financial markets were hit by fears the debt may affect other economies and threaten the euro.
Euro Finance Chiefs Debate Rescue Fund
Jo Couzens and Rob Cole, Sky News Online
European finance chiefs are holding emergency talks to find a way to restore the euro’s credibility before the world financial markets reopen.
The aim is to convince speculators that the debt crisis in Greece will not spread to other struggling single currency countries such as Spain and Portugal.
Finance ministers want to set up a European-style International Monetary Fund which would act as a crisis fund for debt-hit countries in the eurozone.
Chancellor Alistair Darling, in Brussels for the talks despite the political limbo in the UK, has insisted Britain will not be making a contribution to the bail-out fund.
However, he did signal support for doubling an existing pot of EU budget cash for emergency loans to member states facing deficit problems.
„So far as Europe is concerned there is a separate proposal to make available help to eurogroup members as they do to non-eurogroup members like Hungary and Romania,” Mr Darling said.
„Subject to the right safeguards, and IMF involvement we could support that” he said.
„But what we won’t do is provide support for the euro – that has to come from those countries that use the euro.”
The IMF executive board has now approved a 30bn euro loan for Greece.
Another plan being discussed in Brussels would allow the European Commission to borrow on behalf of a member state in financial trouble, using the EU budget as collateral.
French President Nicolas Sarkozy and Italian PM Silvio Berlusconi pulled out of World War II commemorations in Moscow to bolster the efforts.
Despite Mr Darling’s opposition to a large bail-out fund that would expose Britain to the risk of massive hand-outs to debt defaulters, he is obliged to consult his current Tory shadow George Osborne and his Lib Dem counterpart Vince Cable under the courtesies of hung parliament etiquette.
Any plan must be approved by a majority of all 27 EU countries, represented by their finance ministers.
Leaders of the 16 countries that use the single currency approved on Friday £95bn loan package to Greece, backed by the EU and IMF.
Athens was rocked by riots last week after Greece pushed through a series of austerity cuts aimed at cutting its massive budget deficit.
Financial markets were hit by fears the debt may affect other economies and threaten the euro.
