The Group of 20 nations rebuffed German-led calls to come to Europe’s rescue as it battles the region’s debt crisis, saying any decision on outside help hinges on the euro area delivering more financial firepower within two months.
A European review of its financial firewall against the crisis next month is “essential” before any consideration to “mobilize resources” for the International Monetary Fund, the G-20 said yesterday in a statement in Mexico City. Progress will be assessed in April, when officials gather in Washington for the IMF’s spring meetings.
While the German government has yet to show its hand on a plan to combine the region’s temporary and permanent rescue funds, Chancellor Angela Merkel has signaled she is open to review the matter at next week’s EU summit in Brussels. Her government must first win a parliamentary vote in Berlin tomorrow sanctioning last week’s bailout for Greece.
For all that the meeting recognized the “significant progress” made this year in Europe and the U.S. in stemming risks, “this is not the moment for complacency,” Mexico’s Central Bank Governor Agustin Carstens told reporters.