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G-20 Fails to Agree on More Funding for IMF

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"Every day that the eurozone crisis continues, every day it isn't resolved, is a day that has a chilling effect on the rest of the world economy."

World leaders have failed to agree on increasing the resources of the International Monetary Fund, a move that European governments hoped would allow them to tap more foreign aid to help in this crisis-fighting efforts.

"It's important that the IMF sees its resources reinforced," Jose Manuel Barroso, the president of the European Commission, told reporters.

(Related: Unemployment Drops to Six-Month Low)

Speaking from a Group of 20 summit in Cannes, France, Germany Chancellor Angela Merkel said governments are awaiting further details on Europe’s week-old rescue package before committing funds. Their reluctance to immediately channel funds to the euro zone reflects their frustration with Europe’s failure to put an end to the crisis.

"We will now accelerate our work on the guidelines of the EFSF and then all IMF member states are called on to contribute to the EFSF," Merkel said.

European and U.S. markets fell today following Merkel’s comments, as did the euro. The Stoxx Europe 600 Index declined 0.3 percent as of 12:03 p.m. today in London. The euro fell to $1.3822.

Speaking for almost everyone, British Prime Minister David Cameron said, "Every day that the eurozone crisis continues, every day it isn't resolved, is a day that has a chilling effect on the rest of the world economy."

"The rest of the world outside the eurozone is saying, We are ready to do our part to help stabilize the world economy. ... But you can't ask the IMF or other countries to substitute for the action that needs to be taken within the eurozone itself," he added.

Wall St. Cheat Sheet contributed to this article.

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