Eurozone ministers begin frantic search to fill shortfall in bailout fund
New pressure on Greece and Italy after US and emerging powers refuse to commit fresh funds at G20 summit
Eurozone finance ministers will on Monday night begin a frantic search for new sources of capital to boost the area’s main bailout fund to €1 trillion after the US and emerging powers refused to commit fresh funds at the G20 summit last week.
With financial markets braced for another day of volatility, the embattled finance ministers will also put pressure on their counterparts in Greece and Italy to take the measures necessary to ensure the survival of the eurozone.
At the meeting in Brussels, Giulio Tremonti, the Italian finance minister, will be required to produce detailed evidence that his country can reduce its €1.9tn (£1.6tn) debt and reboot its economy within a year. His counterpart in Greece, Evangelos Venizelos – who could be the new premier – will also be told that Greece will not receive the €8bn overdue instalment of the original bailout until a genuine national unity government is in place that accepts in full the terms of the second rescue plan – worth €130bn – adopted at a eurozone summit on 27 October.