Finance ministers from countries that use the Euro have announced more measures to try to resolve the spreading debt crisis but look unlikely to reach agreement to expand the debt rescue fund to a target 1 trillion euros.
The ministers, who are meeting in Brussels, have agreed the details of plans they hope will stabilise sovereign debt market.
They include allowing the debt rescue fund - the European Financial Stability Facility (EFSF) - to guarantee up to 30% of potential losses by investors who buy bonds in EU countries in financial difficulty and to create a co-investment fund for public and private investors to take part in the EFSF.
However, the BBC reports that the talks went late into the evening as the finance ministers sought agreement on bolstering the debt rescue fund from the current 440 billion euros in case large economies such as Italy and Spain need to call for bailout money.
The Eurogroup chief Jean-Claude Juncker, speaking after the session, said the expansion of the facility would be substantial but was not likely to reach the one trillion euro target.
The ministers are to look at boosting the International Monetary Fund so it can help heavily indebted European countries.
Meanwhile, European Central Bank governing council member Christian Noyer has told a conference in Singapore the situation in Europe has significantly worsened in recent weeks, threatening global financial markets.
