We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Geithner, right, with French finance minister Francois Baroin last week Claude Paris/AP/Press Association Images

Timothy Geithner flies in for crisis talks with EU finance ministers

Meanwhile, five major banks are pumping cash into the European banking system in a bid to provide liquidity.

EUROZONE FINANCE MINISTERS are set to meet in Wroclaw, Poland today in an attempt to thrash out a solution to the growing debt crisis.

The ministers are expected to look for a way to implement the expansion of the European Financial Stability Facility, the central fund from which bailout loans are paid.

The expansion was agreed at a previous meeting on July 21 but has been held up by demands from Finland that Greece hand over collateral in exchange for bailout funds.

In a sign that the US is increasingly worried by the EU situation, Treasury Secretary Timothy Geithner will also attend the talks. Reuters reports that Geithner is likely to press for a leveraging of the EFSF – possibly using it as debt security for a larger loan, rather than loaning it directly – to expand its reach.

Meanwhile, five major banks yesterday announced plans to free up liquidity in the European banking system by pumping in cash, the Wall Street Journal reports. The five are the ECB, the US Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank.

Fears are growing that debt crises in Greece and other countries could cause severe problems even for strong economies within the Eurozone.Bloomberg reports that Steve Barrow, a currency researcher at Standard Bank in London has warned investors that the EU’s problem is system-wide, and not confined to Greece.

There has been speculation that Germany could look for an update to the Lisbon Treaty to allow for a new bailout mechanism. However, the country’s finance minister Wolfgang Schäuble yesterday appeared to rule that out, telling Reuters: “It is completely clear that we must solve our problems on the basis of existing treaties. Treaty changes take time.”

Read more: Brussels paints bleak picture for European economic recovery>

Read more: Greece stays in the Eurozone, insist Merkel and Sarkozy>

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.