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EU delays decision on new bailout fund

The leaders of the 17 countries that use the euro have delayed a decision on whether to give bailout funds more firepower until March, European officials said on Tuesday.

business Updated: Feb 28, 2012 21:35 IST

The leaders of the 17 countries that use the euro have delayed a decision on whether to give bailout funds more firepower until March, European officials said on Tuesday.


Eurozone leaders were expected to meet on Friday to decide whether the bailout funds would be allowed to give more than $669 billion in loans.

The European Commission, the IMF and euro countries want the new, permanent bailout fund, the European Stability Mechanism, to run in parallel with its predecessor, the European Financial Stability Facility.

"The decision (on the bailout funds) is not ready to be taken yet," said one official.

Any increase in the funds’ capacity would require Parliamentary approval in most euro countries. Richer states in the eurozone, however, are reluctant to go back to their lawmakers. Because of that, European Council president Herman Van Rompuy decided not to call a special summit of eurozone leaders that had been planned for Friday afternoon, a second official said.