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2011-09-16 07:47:24
European finance ministers have begun arriving in Poland for a debt crisis meeting, with worries about a Greek default high on the agenda.
US Treasury Secretary Timothy Geithner is also attending, underlining Washington's fears that problems in the eurozone could spread beyond Europe.
President Barack Obama has urged the 17-nation eurozone bloc to settle their differences over the debt crisis.
But Austria's finance minister refused to rule out an eventual Greek default.
On arriving for the meeting in Wroclaw, Maria Fekter said more bailout money should be advanced to Greece, but "we will have to think about the alternative".
Finland's minister Jutta Urpilainen also played down the chances of resolving a dispute over providing more money to Greece.
Finland wants collateral in return for contributing money to a second Greek bailout.
But Ms Urpilainen said: "Unfortunately I don't see that we can find a solution tonight."
The meeting in Poland comes a day after central banks pumped billions of dollars into the financial system.
Funding questions
Demands that Greece accelerate its austerity plans, and divisions among governments and policymakers over support for indebted eurozone members, has sparked turmoil in the financial markets.
Greece urgently needs more funds, but a review of the country's budget measures being led by the European Commission will not be completed until the end of September.
In Germany, Finland, and Slovakia there are signs that public opinion is turning against providing funds for further bailouts.
Differences over how the European Central Bank continues funding indebted nations was said to be behind this month's resignation of the European Central Bank's chief economist, Juergen Stark.
Despite this backdrop of disagreement, the finance ministers will attempt to chart a common course through the debt crisis.
Belgian Finance Minister Didier Reynders said on Thursday that now was not the time "to rebuild walls," but to use the crisis to give new foundations to political integration in Europe.
'Political dysfunction'
Several days of sharp falls on the stock markets was only halted on Thursday, when leading central banks, including the US Federal Reserve and Bank of England, agreed to flood the financial system with dollars.
The aim was to ensure that the global banking has enough money to fund day-to-day operations.
Some analysts interpreted the move as a possible prelude to a Greek default. Pumping liquidity into the banking system would help to ensure it does not freeze after a default, said National Australia Bank's head of strategy, Nick Parsons.
However, Greek finance minister Evangelos Venizelos, said his country would meet its austerity plan and default was not an issue.
"The intention is to meet the fiscal targets for this year and next year without delay, without exception and deviations," he said on arriving in Poland.
Despite a rebound on the share markets and a rally in the euro on Friday, few people believe the debt crisis is over.
In Washington on Thursday, International Monetary Fund managing director Christine Lagarde called for bolder action on both sides of the Atlantic, warning that indecision and "political dysfunction" was pushing the US and Europe back towards the brink.
The developed economies have entered a "dangerous new phase", she said.
This week a European Commission report estimated that the region's economy would come to a "virtual standstill" in the final three months of the year, growing by just 0.1%.
Analysis
Chris Morris BBC News, Wroclaw, Poland
At the end of another rollercoaster week for the eurozone, ministers are gathering to try to present a united front.
They'll want to resolve outstanding differences about a second financial bailout for Greece - and, no doubt, to discuss what might have to be done if things go from bad to worse.
There will be plenty of discussion in particular about the size and scope of the eurozone's rescue fund. Agreement was reached back in July to give it more power to intervene before countries reach a crisis point, and to allow it to help recapitalise European banks.
But national parliaments in the eurozone have to approve those changes, and some are taking their time. There is a limit to how much money countries are prepared to pay to help partners who have run into difficulty, even partners with which they are closely intertwined. It's a reminder that this is as much a political crisis as an economic one.