MEXICO CITY -(Dow Jones)- Europe's crisis is a global crisis, and international partners in the Group of 20 should provide a roadmap for additional funding to help stem the sovereign debt crisis, according to the European Union's economics chief.
Olli Rehn said the EU was set to decide sometime in March on increasing the combined firepower of its transitional and permanent rescue funds, currently capped at EUR500 billion.
Raising that ceiling is seen as a necessary condition for non-euro-zone countries from the G-20 industrial and developing nations to commit funds to aid Europe via an increase in their contributions to the International Monetary Fund.
"It is evident that Europe will be at the focus of the G-20. We expect both sympathy and support from our international partners," Rehn said at the margins of a summit of G-20 finance ministers and central bankers in Mexico City.
Asked about Germany's reluctance to discuss increasing the joint capacity of the rescue funds at a summit of EU heads of state planned for March 1-2, Rehn said that "constructive dialogue" was continuing and that he was "confident" there would be a decision in March.
He also said he expected non-euro-zone countries to finalize their contributions alongside the European rescue fund through the IMF at the Fund's spring meetings April 20-22.
Rehn said that he'd received "constructive support from our international partners" about those contributions, especially from emerging-economy countries.
Regarding Greece, Rehn said that there remain important risks to the implementation of the country's second bailout program. "There's implementation risks deriving from two factors: lack of political unity and weak administrative capacity," he said.
He also said that the European Commission, the EU's executive arm, would be installing its own officials at Greek ministries to provide technical assistance and monitoring on a permanent basis on the ground in Athens. The official also said talks are continuing with the IMF to share the burden of the Greek bailout.
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Olli Rehn said the EU was set to decide sometime in March on increasing the combined firepower of its transitional and permanent rescue funds, currently capped at EUR500 billion.
Raising that ceiling is seen as a necessary condition for non-euro-zone countries from the G-20 industrial and developing nations to commit funds to aid Europe via an increase in their contributions to the International Monetary Fund.
"It is evident that Europe will be at the focus of the G-20. We expect both sympathy and support from our international partners," Rehn said at the margins of a summit of G-20 finance ministers and central bankers in Mexico City.
Asked about Germany's reluctance to discuss increasing the joint capacity of the rescue funds at a summit of EU heads of state planned for March 1-2, Rehn said that "constructive dialogue" was continuing and that he was "confident" there would be a decision in March.
He also said he expected non-euro-zone countries to finalize their contributions alongside the European rescue fund through the IMF at the Fund's spring meetings April 20-22.
Rehn said that he'd received "constructive support from our international partners" about those contributions, especially from emerging-economy countries.
Regarding Greece, Rehn said that there remain important risks to the implementation of the country's second bailout program. "There's implementation risks deriving from two factors: lack of political unity and weak administrative capacity," he said.
He also said that the European Commission, the EU's executive arm, would be installing its own officials at Greek ministries to provide technical assistance and monitoring on a permanent basis on the ground in Athens. The official also said talks are continuing with the IMF to share the burden of the Greek bailout.
nasdaq.com
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