Updated: 20/12/11 : 08:22:54
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Europe :: UK Refuses To Support IMF's EU Bailout Fund

Chancellor George Osborne has refused to contribute to the IMF's bailout fund for the EU.

Mr Osborne told his EU colleagues he will not provide any cash to boost the 200bn euro fund, which is specifically aimed at the troubled eurozone.

The conference call with 26 other EU finance ministers lasted three hours but ended without Britain's agreement to put in up to 50bn euros.

Mr Osborne insisted that while Britain was ready to take part in global efforts to bolster the IMF's coffers, it would not participate in a fund only aimed at the beleaguered eurozone region.

Sweden, Denmark, Poland and the Czech Republic joined the eurozone nations in contributing to the Washington-based fund, subject to parliamentary approval.

A British Treasury spokesman said: "The UK has always been willing to consider further resources for the IMF but for its global role and as part of a global agreement."

Paul Donovan, Global Economist, Managing Director UBS Investment Bank said, "It's not just the UK thatís not playing ball.

"The American's are saying the IMF is not bailing out California, so why should it start bailing out eurozone provinces."

Dan Morris, vice president and global strategist, JPMorgan Asset Management questioned whether the IMF fund could be successful.

"The fundamental change that needs to take place is at the country level," he said.

"What is going on in Greece, Spain and Italy in terms of the austerity and reform packages is really the key thing for the markets right now."