EU Commissioner says U.S., UK should provide more cash to IMF

PanARMENIAN.Net - The U.S. and UK should provide more cash to the IMF, the European Union's Economic Commissioner, Olli Rehn, has said. Eurozone states are providing an extra 150bn euros (£125bn; $194bn) to boost its ability to intervene in a crisis.

However, the U.S. and UK have so far refused to make additional contributions.

The UK government has said it wants any increase in resources to involve all G20 nations.

"We need stronger European firewalls, we also need support from our American and British friends in the sense that we need to increase the resources of the IMF," said Mr Rehn at the World Economic Forum (WEF) in Davos.

Mr Rehn stressed Europe also needed to strengthen its own "financial firewalls".

European leaders are meeting on Monday to discuss both a new fiscal treaty and the details of a permanent bailout fund - the European Financial Stability Mechanism (EFSM).

Also speaking at Davos, U.S. Treasury Secretary Timothy Geithner, suggested the U.S. may be prepared to play a role.

"If Europe is able to find the political will to build a more effective firewall then you are going to see to see the IMF, the major shareholders in the IMF and emerging economies very supportive of those efforts," said Mr Geithner.

UK Chancellor George Osborne is also due to address the issue on Friday at a speech to British business leaders in Davos, BBC reported.