BRUSSELS (MNI) – EU officials Monday downplayed the significance of
a 10-day “deadline” set by EU leaders last week for confirming how much
each individual member state will pay towards their goal of a E200
billion European contribution to the International Monetary Fund.

The “deadline is a political one, not a legal one,” a spokesman for
the European Commission said in response to a question about the
possibility that EU finance ministers could fail to reach an agreement
when they discuss the issue in a teleconference this afternoon, on the
last day of the so-called deadline.

EU finance ministers are due to start talks between 1430 GMT and
1600 GMT (0930-1100 ET), a spokesman for Eurogroup President Jean-Claude
Juncker said.

The extra money for the IMF is an important part of the strategy
agreed by EU leaders at their summit on December 9 to protect countries
such as Italy and Spain from the Eurozone’s sovereign debt crisis, along
with tighter new fiscal rules.

After the summit, EU officials suggested that about E150 billion
was expected to come from Eurozone countries and the rest from other EU
member states.

Concrete pledges from governments, however, have been slow to
emerge.

The head of Germany’s central bank last week said that Germany’s
contribution, which is expected to be E45 billion, was conditional on
there being a “broad deal” that included non-European IMF members.

The UK, which EU officials had hoped might contribute over E30
billion, has hinted that it may offer only about 10 billion pounds
sterling.

Belgium’s central bank indicated last week that it was likely to
contribute around E9.5, while non-Eurozone Denmark has pledged E5.4
billion.

–Brussels bureau: +324-9522-8374; pkoh@marketnews.com

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