New request from China to help Europe was made the day on which European leaders gathered for the second three days meeting, which had to be sought the debt crisis and problems in Greece.
Emerging market economies and China in particular are reluctant to participate in the European Support Fund through the International Monetary Fund (IMF). It said an unnamed source “close to decision makers in Europe,” quoted in “China Daily”.
According to this source, “the consent of the emerging market economies may be included in the final document of the summit of European leaders’ forum in Brussels if they decided to open up that fund for the participation of foreign investors – both private and public. Formal confirmation of this information was not received.
The capacity of the European Financial Stability Fund is now 440 billion dollars. It is believed that in terms of markets that this is not enough for the Fund to cope with the situation, if the crisis infect a large economy such as Italy. Recently emerged ideas fund be increased to 1 trillion euros. Its fate would have been a major subject of discussion at a meeting of leaders of the eurozone.
Reuters said before the meeting of leaders of the euro area, the chances to reach an agreement on measures against the debt crisis appear slim. EU expressed its readiness to support banks, but does not indicate a specific figure for their recapitalization, said in the draft of the meeting, told Reuters. “New York Times” also predicts failure of the meeting.
Discussions to reach a deal on the euro become complicated, including significant restructuring of the Greek debt, pouring new capital in European banks and increasing the rescue fund so as to prevent financial panic in Italy and also in Greece and Portugal, the publication notes. Meanwhile, shortly before the summit, the German Parliament Chancellor Angela Merkel supported the project. Lawmakers of the Bundestag have received a secret report which says that the future of Greece is a bleak.