Open

Coming up

Don't miss

Replay


LATEST SHOWS

DEBATE

Gaza: A Truce At All Costs?

Read more

AFRICA NEWS

Central African Republic: Brazzaville ceasefire talks deliver fragile deal

Read more

FOCUS

Sluggish tourist season in Crimea

Read more

ENCORE!

Bartabas : Mixing Christ with Spanish music and dancing horses

Read more

IN THE PAPERS

Shifts in the propaganda war waged between Israelis and Palestinians

Read more

IN THE PAPERS

French MPs face quandary in pro-Palestinian rallies

Read more

THE INTERVIEW

Yezid Sayigh, Senior Associate at the Carnegie Middle East Center in Beirut

Read more

#TECH 24

Mind the Gender Gap : getting more women into the tech sector

Read more

INSIDE THE AMERICAS

Bolivian children: heading to work aged 10

Read more

  • France says missing Algerian plane 'probably crashed'

    Read more

  • 51 French nationals aboard missing Algerian plane

    Read more

  • Deadly Israeli strike on UN shelter in Gaza Strip

    Read more

  • Pope meets with Sudanese Christian woman sentenced to death for apostasy

    Read more

  • Algerian jet vanishes: 'We should eliminate the missile hypothesis'

    Read more

  • Italy’s Nibali cruises to easy victory in 18th stage of Tour de France

    Read more

  • Iraqi parliament elects moderate Kurd as president

    Read more

  • US, European aviation agencies lift travel restrictions to Tel Aviv

    Read more

  • No end to fighting until Israel ends Gaza blockade, Hamas says

    Read more

  • Two foreign women shot dead in western Afghanistan

    Read more

  • At least 60 killed in attack on prison convoy near Baghdad

    Read more

  • Cycling is ‘winning the war on doping,’ says expert

    Read more

  • Ceasefire agreed for Central African Republic

    Read more

  • Can Jew-kissing-Arab selfie give peace a viral chance?

    Read more

  • Botched Arizona execution takes nearly two hours

    Read more

Europe

Britain will not 'provide support' to new euro safeguard fund

Text by News Wires

Latest update : 2010-05-10

Britain's Finance minister Alistair Darling said his country would not "provide support" to a European bailout fund to help potential debt-troubled eurozone countries, hours before his 27 EU counterparts meet in Brussels to vote on the measure.

AFP - Britain said on Sunday that it will refuse to underwrite a European Union bailout fund worth some 60 billion euros that finance ministers want to agree at emergency talks in Brussels.

"We wouldn't participate in a European bailout fund," a British diplomat told AFP of moves for all 27 EU member states to guarantee borrowings destined to bailout troubled economies in the crisis-hit 16-nation eurozone.

British Labour Chancellor Alistair Darling landed in Brussels shortly before the European Commission was due to finalise plans to set up a mini-European version of the International Monetary Fund to aid debt-saddled euro nations.

Talks between finance ministers of the full EU, of which Britain and eastern industrial powerhouse Poland are the main non-euro states, are due to start at 3:00 pm (1300 GMT), after eurozone leaders ordered a financial firewall to be agreed by Sunday night.

EU diplomats have told AFP that a kind of "bank" would be set up with unused funds from the bloc's budget, which would then serve as "base capital" on which to borrow 60 billion euros (more than 75 billion dollars) on the bond market.

Guarantees sought from EU member states would see the interest rates kept low, sources stressed.

The plans are intended to extend emergency provisions, that have previously allowed the EU to help non-euro members like Hungary, Latvia or Romania, to the eurozone, given treaty obstacles stemming from monetary union.

Britain, whose own debts are on a similar scale to those of Greece, and which is predicted by the commission to have the highest public deficit in the EU this year, fears a long-term impact on its taxpayers.

Darling will take Britain's decision during a vote that French diplomats have told AFP could be passed using qualified majority voting, with Treasury officials "informing" potential replacements in the London government following last week's general election.

Power-sharing negotiations resumed on Sunday between Conservative and Liberal Democrat rivals unfold back in London, with Conservative leader David Cameron expected to lead an incoming minority or coalition government.

Darling can expect pressure in return from eurozone peers over Britain's refusal in March to back new laws curbing hedge and other high-risk investment funds, mostly based in the City and which critics say cost Europe dearly during market "attacks" on Greece, Spain and Portugal.

Date created : 2010-05-09

  • EUROPEAN UNION

    Leaders look to calm markets with new crisis fund

    Read more

  • MARKETS

    Euro drops to1.26 dollars, hitting near 14-month low

    Read more

COMMENT(S)