Weaker nations were pushing for more money to calm volatile bond markets, but Germany opposed the plans and they were dropped, the Telegraph reports.
European ministers say individual countries are taking action to cut deficits, with Ireland’s €6bn (£5bn) austerity budget announced yesterday and Portugal expected to unveil a similar round of spending cuts.
Obama tax deal boosts growth figures
US President Barack Obama agreed with congressional Republicans to extend all tax cuts from the previous administration in a move that has prompted economists to up their 2011 growth forecasts.
Obama agreed to include a $129bn payroll tax holiday. If the move passes Congress, despite opposition from Democrats, the US will be the only large industrialised country that will not tighten its belt in 2011, leaving the deficit at 10% of GDP.
JP Morgan economist Michael Feroli says the tax move will increase his growth forecast from 3% to 3.5%, whilst Deutsche Bank analysts say they could up their forecast by 0.7% to 4.1%, the Financial Times reports.
IMF boss demands ‘comprehensive’ euro plan
IMF managing director Dominique Strauss-Kahn has called on European leaders to work towards a more comprehensive solution to the eurozone debt crisis, calling current plans ‘piecemeal’ and inadequate.
Strauss-Kahn says he does not believe the euro is at risk, but more must be done to calm investor fears, the Financial Times reports.
