EU ministers seek euro plan credibility

European Union finance ministers are trying to find a way to calm concerns about the credibility of their plan to save Europe's single currency, officials say. "We all know that Europe has not been able to convince markets that its governance setup and its measures against the crisis were enough," Italian Deputy Economy Minister Vittorio Grilli told the Italian business newspaper Il Sole 24 Ore. "More integration and more effective instruments are needed. We are not yet there." The ministers, were to hold a phone conference Monday, 10 days after EU leaders announced a "fiscal compact" to repair eurozone flaws. They were expected to discuss securing $260 billion in member-state loans for the International Monetary Fund so it can shore up weak eurozone members, the officials said. The fiscal compact is expected to be finalized next month. The EU leaders, at the end of a summit Dec. 9, announced the plans to pump the money into an IMF war chest, with the 17 eurozone members providing about three-fourths, or $195 billion, of the loans and other EU countries providing the remaining $65 billion, and possibly more money coming from outside Europe. They set Monday as the deadline to raise the $260 billion. Britain, despite vetoing an EU-wide treaty to enforce the new fiscal rules, was expected to face pressure Monday to contribute more than $39 billion to the eurozone bailout, Britain's Daily Telegraph reported. The amount would be equal to France's expected contribution and second only to Germany's, the newspaper said. British Prime Minister David Cameron has vowed not to provide any extra funding to the IMF to save the euro, a currency Britain does not use. Britain is already liable for $19 billion of loans and guarantees to Ireland, Greece and Portugal. Germany's central bank said last week it would contribute only if non-eurozone and non-European countries did too. Fitch Ratings said Friday it might soon downgrade six EU countries, including Spain and Italy, calling an overall crisis solution in all likelihood "technically and politically beyond reach." It also changed its outlook on France's AAA rating to negative. Moody's Investors Service also cut Belgium's rating two levels to Aa3 Friday.