International Monetary Fund: admits it might not be able to save the Euro as it emerges that current threat is 'worse than crisis in 2008'

The International Monetary Fund last night issued an extraordinary warning that it might not have enough cash to stem the crisis engulfing the Eurozone, prompting fears that Britain could be forced to find billions more to bail out debt-stricken economies.

Chancellor George Osborne has refused to put British funds on the line for a new EU rescue scheme but he would be unable to resist a call from the IMF to do more.

The dramatic development came as France was forced to deny speculation that it is on the brink of having to bail out its banking system.

Emergency plans are being drawn up for a £2.6trillion deal aimed at saving the euro by allowing Greece to default on its massive debts.

The funds would be used to create a ‘firewall’ around the most indebted Eurozone countries, allow for an ‘orderly’ Greek default on its towering debts, and bail out those European banks most at risk. Read More