MEXICO CITY, Feb. 27 -- The question of how to help the financially-troubled eurozone has dominated the agenda of the ongoing meeting of G20 finance ministers and central bankers in Mexico City.
Several members of the bloc made up of the world's leading economies said the eurozone must come up with a stronger and more credible financial firewall if it wanted more resources from the International Monetary Fund.
However, Germany, the "stability anchor" of the single-currency bloc, maintains a hardline on eurozone boosting resources in the fight against the financial crisis.
Speaking on the sidelines of the G20 meeting, German Finance Minister Wolfgang Schaeuble said the eurozone has already "done its homework."
Pumping money endlessly into the rescue funds would not help the countries overcome their problems in the long-run and would create disincentives for countries to continue reforms, Schaeuble said.
The current eurozone bailout fund, the EFSF, temporary in nature, started with 440 billion euros, but now has around 250 billion after loans were given to debt-ridden Ireland, Greece and Portugal.
A permanent rescue fund, the ESM, is also expected to come into force in July, with a maximum lending capacity of 500 billion euros.
European leaders proposed the two rescue funds be run in parallel so as to provide better protection against the spread of the debt crisis.
Germany, together with France, has been opposing the idea since October.
The eurozone's top economy is also expected to face pressure over the issue from fellow members on a European Union summit slated for March 1.
Prior to the current G20 meeting in Mexico City, U.S. Treasury Secretary Timothy Geithner called on Europe to put in place a "strong, more credible firewall."
Other G20 members including Britain and some key emerging economies have made similar appeals, indicating that they would only help in raising contingency funds for the bloc if the eurozone does more to help itself.
One more precondition for emerging economies to do so is to have larger voting powers in the IMF, Brazil's Finance Minister Guido Mantega said after a meeting with counterparts from Russia, China, India and South Africa, on the sidelines of the G20 meeting.
Major economies call for stronger financial firewall in eurozone