07:23AM
U.K. wants to see color of euro zone's money (by Polya Lesova)

DAVOS, Switzerland (MarketWatch) -- U.K. Chancellor George Osborne said on Saturday that Britain would think seriously about providing further resources to the International Monetary Fund if the euro zone boosts its firewall against the sovereign debt crisis. "The euro zone needs to provide a significant increase in available resources," Osborne said during a panel discussion at the World Economic Forum's annual meeting in Davos. The U.K. will not be willing to contribute more to the IMF "unless we see the color of their [the euro zone's] money," Osborne said. He added that concluding a deal between Greece and its private-sector creditors on a debt writedown is "fundamental" to achieving stability in the euro zone.

07:04AM
Japan stands ready to support euro zone: PM Noda (by Polya Lesova)

DAVOS, Switzerland (MarketWatch) -- Japanese Prime Minister Yoshihiko Noda said on Saturday that Japan "stands ready to support the euro zone as much as possible." Noda made the comments by videolink from Tokyo during a panel discussion at World Economic Forum's annual meeting in Davos. Noda also said that Europe's sovereign debt crisis is the biggest risk to the world economy and his nation is working with South Korea and India to reduce the risk of the crisis spreading to Asia.

06:52AM
IMF chief repeats call for strong Europe firewall (by Polya Lesova)

DAVOS, Switzerland (MarketWatch) -- The chief of the International Monetary Fund, Christine Lagarde, reiterated her call on Saturday for a "decent firewall" in the euro zone to stem the sovereign debt crisis. "It's critical that euro-zone members develop a clear, simple firewall [...] to provide trust," Lagarde said at a panel discussion at the World Economic Forum's annual meeting in Davos. Lagarde is among several high-level officials who have suggested in recent days that a bigger firewall is needed in Europe, including the British prime minister and the U.S. Treasury secretary. "No one is immune in the current situation," Lagarde warned. "It's not just a euro-zone crisis." The fund is currently aiming to raise up to $500 billion in additional lending resources, so it is better equipped to respond to the euro crisis and deal with other emergencies.

06:36AM
Germany wants EU to control Greek budget: report (by Polya Lesova)

DAVOS, Switzerland (MarketWatch) -- Germany wants Greece to give up sovereignty over its budget to a euro-zone commissioner in order to receive its second bailout from international lenders, The Financial Times reported on Saturday, citing a copy of the proposal it has obtained. The proposed commissioner would be able to veto Greek budget decisions if they do not comply with targets set by Greece's international lenders, the newspaper said. The German proposal, which has been shared with euro-zone finance ministers, says that "budget consolidation has to be put under a strict steering and control system," and that given the disappointing compliance so far, "Greece has to accept shifting budgetary sovereignty to the European level for a certain period of time," according to the FT.