Pressure mounts on Europe to boost rescue fund

Financial Times
September 24, 2011

Pressure mounted over the weekend for Europe to boost its rescue fund to combat its spreading sovereign debt crisis, though eurozone ministers would go no further than hinting that it might be increased.

On Saturday Tim Geithner, US Treasury secretary, and George Osborne, UK chancellor of the exchequer, said that the eurozone needed to go beyond existing plans to prevent the Greek crisis spreading throughout Europe.

Eurozone ministers have underlined the paramount importance of implementing an agreement made on July 21 for a second rescue package for Greece, which is being passed currently through the zone’s parliaments.

While praising the efforts of eurozone governments so far to commit support, Mr Geithner said, “Further action to expand the effective capacity of these commitments is still necessary to create a firewall against further contagion.”

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