25 Feb 2012

G20 reluctant to bail out Europe yet

1:36 pm on 25 February 2012

G20 ministers say Europe will have to do more to fight its financial crisis before they agree to provide back-up in the form of a bigger IMF fund.

European Central Bank council member Jens Weidmann of Germany said he expected no decision would be made by summit members in Mexico City this weekend.

Europe hopes that China, Japan and others will commit to giving more money to the International Monetary Fund to help Eurozone countries.

But many G20 countries insist that Europe must bolster its own bailout funds first.

The IMF wants to raise up to $US600 billion to help deal with fallout from the Eurozone debt crisis, but the plan faces resistance.

This reluctance has put the onus on Europe's richest countries plus China, Japan and others to raise the funds.