European Commission President Jose Barroso said he expects “no decision” on financial firewalls to be reached at a March 1-2 European Union summit.
With a parliamentary vote on a second Greek aid package looming in Berlin today, German Chancellor Angela Merkel’s government must now decide whether to back plans to combine rescue funds and produce a potential firewall of 750 billion euros ($1 trillion).
“It seems now that no decisions are going to be taken” at the leaders’ meeting, Barroso said in Brussels today. Europe needs ‘’stronger firewalls and much more flexible ones,” he said.
Some argue that it would be better to postpone discussion of the issue until after a Greek debt-swap deal with private creditors has been completed, Barroso said. “March of course has 31 days. During March this matter is going to be addressed.”
Barroso called on “fast-growing economies that are generating cash” to contribute more to the International Monetary Fund. “This is going in the right direction,” he said.
“I’m looking for progress on this area until April,” Barroso said. “That’s when it’s expected to take a decision.”