European Union finance ministers were quoted on Sunday by Reuters as saying they would do everything possible to defend the euro before starting talks on emergency measures to stop Greece's debt crisis spreading to other countries. The European Commission will present the ministers with a proposal on a stabilisation mechanism intended to provide a safety net for other euro zone countries with bloated public finances and low growth such as Portugal, Spain or Ireland. Bond yields of these countries have been rising sharply -- increasing the risk premium investors pay to hold their debt -- on market concern they may be next to need assistance. Greece has already secured a 110 billion euro ($147.6 billion) three-year emergency loan package from the euro zone and the International Monetary Fund. "We are going to defend the euro... we have to give more stability to our guarantee," Spanish Economy Minister Elena Salgado told reporters as she arrived for the talks in Brussels. EU sources said the Commission proposal that the ministers would discuss would extend the European Union's balance of payments facility, now reserved for non-euro zone countries with current account problems, to euro zone members as well. Under such a mechanism, the European Union's executive arm, the European Commission, would raise money on the markets using its AAA rating and lend it to the euro zone country in need, perhaps together with the IMF under strict conditions. The bonds would be guaranteed by euro zone countries. -- SPA
