davos delegates await merkel speech
Last Updated : GMT 06:41:18
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Davos delegates await Merkel speech

Arab Today, arab today

Arab Today, arab today Davos delegates await Merkel speech

London - Arabstoday

Business and political leaders in Davos hope Germany\'s Chancellor Angela Merkel will offer solutions to the eurozone crisis. Chancellor Merkel is expected to urge the 17 countries that use the euro to deal with fundamental problems underlying the crisis. That would be preferable to a promise of more money, she is expected to tell the World Economic Forum later. The IMF wants the eurozone to inject more cash into its rescue fund. The International Monetary Fund wants the sum available for bailouts to grow beyond 500bn euros ($647bn; £416bn) to ensure talks between private creditors and Greece do not grind to a halt. Urgent situation The reserves could be bolstered by merging the temporary European Financial Stability Fund with the permanent European Stability Mechanism, according to IMF\'s managing director, Christine Lagarde. \"If the two together could make a common fund, it would be a very strong signal of confidence in Europe,\" she said. Christine Lagarde IMF chief Lagarde wants eurozone governments to contribute more The situation is urgent according to the IMF, which recently predicted that the economic growth rate in Europe could halve this year from an earlier estimate of 3.3% if the eurozone crisis remains unsolved. In spite of such gloomy predictions, it appears likely that Mrs Merkel will resist Ms Lagarde\'s proposal to have public creditors contribute more. \"It makes no sense if we keep promising money but don\'t combat the causes of the crisis,\" the chancellor said in an interview with six European newspapers ahead of the speech.  

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