International Monetary Fund is in a bid to strengthen the eurozone for which European countries have agreed to provide 150 billion euros. However, reports suggest EU finance ministers could not reach the promising target sum of 200 billion euros as Britain held back its decision to support this scheme.
London is reluctant to stay out of this scheme as it wants an increase in IMF resources to be part of a broader process involving nearly all the G20 nations. ?Britain has always been willing to consider further resources for the IMF but for its international role as part of a global agreement,? UK Chancellor of the Exchequer, George Osborne, said in a statement.
IMF ?s role is to support countries, not currencies, British Prime Minister David Cameron insisted . While eurozone countries are trying to come out from the prolonged crisis, they accuse Britain of showing reluctance to support. Recent reports said British government is acting on the country?s national interests by focusing on upcoming common market and not eurozone. The pursuit of financial success of London city is only because of the interests and focus on the common market resulting into expanding the economic clout.
Britain’s European partners are unable to offer preconditions that provide independence of The City. London’s financial hub is now estimated to account for one fifth of the British economy. Many analysts insist Cameroon is reluctant on making City subservient to the new amendments to the Lisbon Treaty.
According to the latest Ipsos MORI poll, 56 per cent respondents in Britain agreed on David Cameron?s decision at Brussels summit.
LACK OF SOLIDARITY
The eurozone nations that had to accept international bailouts, such as Ireland and Greece, would not be part of the new scheme. However, the largest contributions to the fund will come from Spain and Germany. Countries like Denmark, Sweden, Poland and Czech Republic also took pledge to be a part of the contributions.
European Central Bank President Mario Draghi said he had no doubts that the euro would survive. He warned that?risks leading to eurozone?s instability will lead to global recession.?The ECB also alarmed that some eurozone banks had become used to central-bank funds, and could face “significant challenges” in future.
(Written by Manasa Kesiraju; Edited by Moign Khawaja)