EU Finance Ministers Seek US$261-B in IMF Funds

European finance ministers are working to meet a self-imposed deadline for drawing additional aid to the debt crisis, and to form new budget rules as investor confidence that a comprehensive solution is achievable wanes.

Euro Area finance ministers held a conference call beginning at 3:30 p.m. Brussels time to discuss 200-B Euros (US$261-B) in additional funding through the International Monetary Fund (IMF) and the mechanics of a so-called fiscal compact that was negotiated at a December 9th European Union summit, according to people familiar with the planning.

The accord to ratchet up budget rules failed to ease concern that the monetary union risks buckling under the weight of the 2-yr-old crisis.

Fitch Ratings lowered France's credit outlook and put other euro-area nations on review December 16, saying an overall crisis solution may be technically and politically beyond reach. Belgium's rating was cut 2 levels to Aa3 by Moody's Investors Service on the same day.

European Central Bank President Mario Draghi damped expectations the bank will step up bond purchases to tame rising borrowing costs, this from an interview published today that the bank cannot overstep its mandate.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.