No new measures for euro zone to prevent contagion

| December 7, 2010 | 0 Comments
No new measures for euro zone to prevent contagion

The meeting of European finance ministers continues today with the debt crisis again to be high on the agenda.

However, other issues including the EU budget and VAT are also expected to be discussed.

Yesterday’s meeting ended with Jean-Claude Juncker, Luxembourg Prime Minister and Eurogroup Chairman, telling reporters that there is no need to increase the €750 billion (£636 billion) bailout fund - known as the European Financial Stability Facility.

The recent Irish bailout has done little to allay fears and speculation has been mounting that other weaker euro zone economies may need financial aid.

As a result, Dominique Strauss-Kahn, chief of the International Monetary Fund (IMF) called on ministers to boost the bailout fund.

However, German Chancellor Angela Merkel was against the suggestion and said there was no need to increase the size of the facility.

Meanwhile, Ireland will take further action to address its problems with details of new budget proposals due today.

Irish Prime Minister Brian Cowen is pushing his fiscal plan through parliament in order to avoid the risk of a snap election (an election called earlier than scheduled).

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