Arab Today, arab today europe firewall boost throws spotlight on imf
Last Updated : GMT 13:12:40
Arab Today, arab today
Arab Today, arab today

Europe firewall boost throws spotlight on IMF

Arab Today, arab today

Arab Today, arab today Europe firewall boost throws spotlight on IMF

Abu Dhabi - Arabstoday

With a decision to expand its anti-crisis \"firewall\", the eurozone has thrown the ball firmly back into the court of other economic powerhouses who pledged more cash for the IMF if Europe stumped up first. After providing loans to help debt-wracked countries such as Greece, Christine Lagarde, head of the International Monetary Fund, has asked members to give her ê500 billion in extra funds for possible future eurozone bailouts. But at a fraught meeting of finance ministers and central bank chiefs in Mexico City in February, the leading and emerging economies in the group of 20 (G20), said they would only boost IMF funding if the eurozone first put its hand in its pocket. After a month of wrangling and some German resistance, the eurozone Friday clinched a deal it claimed was worth more than one trillion dollars, even though 300 billion euros of that was in loans already pledged. In fact, they raised the maximum lending capacity of their bailout pools to 700 billion euros, on a temporary basis, from 500 billion euros, prompting scorn from analysts who said it was insufficient and full of artificial padding. European officials nevertheless judged they had done enough to unlock funds from other G20 members. \"I think now we Europeans can travel to the Spring meeting of the (World) Bank and the (International Monetary) Fund in Washington having done our homework on European firewalls,\" said Joerg Asmussen, a top member of the European Central Bank. \"I trust today\'s decision will pave the way for an IMF decision at the Spring meetings,\" said EU Economic and Monetary Affairs Commissioner Olli Rehn. And although the boost to the new \"firewall\" was far less ambitious than many wanted, Lagarde seemed satisfied ahead of the crunch April 20-22 IMF meeting where the issue of fresh lending for the Fund will be discussed. The deal \"will strengthen the European firewall and support the IMF\'s efforts to increase its available resources for the benefit of all our members,\" she said in a statement. The IMF\'s main lender, the United States, also hailed what Washington termed the eurozone\'s \"unequivocal commitment to reinforcing their currency union.\" While economists generally criticised the eurozone\'s firewall deal -- with one comparing it to a \"chocolate fireguard\" -- it was viewed probably sufficient to convince the likes of China and Japan to release more IMF loans. \"By yielding to international pressure to raise its efforts, European finance ministers will probably be able to obtain additional commitments from the IMF and the G20 to complement the European rescue efforts at the G20 summit in Mexico in June,\" said Christian Schulz from Berenberg Bank. \"The idea is to have a double firewall: a European response (and I think that Europe has done its work) and an international response coordinated by the IMF with a raising of its resources,\" French Finance Minister Francois Baroin said. \"We are in favour of that. There will still be some more debates within the G20 on this question but we are going in the right direction,\" Baroin told reporters after the meeting. The emerging powers of the G20 are demanding more than just money from the Europeans -- they want more power at the IMF. At a recent summit in New Delhi, leaders from the BRICS -- Brazil, Russia, India, China and South Africa -- made an urgent call for reform of the IMF to reflect their growing influence in the world economy. And Baroin warned one should not assume that more funds for the IMF was a done deal. Asked about Lagarde\'s initial response, he said: \"It bodes well, but there are still a fortnight of discussions.\" Germany, seeking not only to deal with the bloc\'s current debt problems but to avoid future crises, wants expert watchdogs to oversee public spending by members of the European Union to prevent future Greek-like near-bankrupcy scenarios, Spiegel magazine said in its latest edition out Monday. Finance Minister Wolfgang Schaeuble is suggesting that independent expert commissions be set up at both national and European level to do so, Spiegel said citing an internal ministry document. The commissions would be tasked with providing early warning of \"abnormal developments\" likely to spark a financial crisis. Germany has been called upon to provide the lion\'s share of EU funds to shore up debt-ridden fellow members states, such as Greece. Twenty-five of the EU\'s 27 members signed a budgetary pact in March to reinforce financial discipline in a bid to avoid any repeat of the financial crisis. The pact -- which Britain and the Czech Republic refused to join -- allows for near-automatic sanctions in case of public over-spending.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today europe firewall boost throws spotlight on imf Arab Today, arab today europe firewall boost throws spotlight on imf

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Air raid kills eight women, child

GMT 06:42 2017 Friday ,17 February

Air raid kills eight women, child
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 20:02 2017 Saturday ,18 February

Gold edges higher as global equities lose momentum

GMT 10:20 2017 Thursday ,16 February

New Zealand's Spark rings up interim profit rise

GMT 05:40 2017 Thursday ,16 February

Stocks rise on Yellen’s positive US outlook

GMT 05:34 2017 Thursday ,16 February

‘Protectionism, populism threaten euro zone’

GMT 04:51 2017 Thursday ,16 February

Oil pulls back after brief rally
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday