World leaders have failed to agree on increasing the resources of the International Monetary Fund, a move that European governments hoped would allow them to tap more foreign aid to help in crisis-fighting efforts.
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Speaking from a Group of 20 summit in Cannes, France, German Chancellor Angela Merkel said governments are awaiting further details on Europe’s week-old rescue package before committing funds. Their reluctance to immediately channel funds to the euro zone reflects their frustration with Europe’s failure to put an end to the crisis.
European and U.S. markets fell today following Merkel’s comments, as did the euro. The Stoxx Europe 600 Index declined 0.3% as of 12:03 p.m. today in London. The euro fell to $1.3822.