Europe needs to bulk up its planned permanent euro rescue fund, take politics out of its decision- making and use it as a building block in a global financial firewall, a former International Monetary Fund official said.
European governments are making a mistake by ruling out debt restructurings for countries such as Greece before 2013 and should consider “pre-emptive” bond exchanges, a former top International Monetary Fund official said.
A European proposal to channel central bank loans through the International Monetary Fund may deliver as much as 200 billion euros ($270 billion) to fight the debt crisis, two people familiar with the negotiations said.
France is balking at calls for the faster imposition of sanctions on deficit-ridden governments, putting it at odds with Germany and the European Central Bank over how to prevent a repeat of the debt crisis.
European leaders are preparing a pledge to stamp out the debt crisis and defend the euro, seeking to keep markets at bay until a late-March deadline to bridge differences over budget rules, rescue-loan rates and buybacks.