Eurozone finance ministers will face pressure to increase the size of their financial “firewall” as the continent’s sovereign debt crisis dominates discussion at the G20 meeting of finance ministers and central bank governors in Mexico this weekend.
Most of the rest of the G20 see such a decision as a prerequisite to agree coordinated moves to resolve the crisis, including increased resources for the International Monetary Fund.
After the failure of the Cannes G20 summit to agree additional IMF resources last November, the ambition was to secure agreement by this weekend’s meeting. But the deadline has slipped because non-eurozone G20 countries insist the eurozone must first show it is willing to solve its own problems.