Some G20 officials see increased IMF funding as a potential „grand bargain“ in the making: Euro-zone leaders would commit to credible deficit-reduction plans and easier monetary policy, while countries with current account surpluses would pump more money into the IMF.

The motivation is to prevent Europe from pulling the rest of the world into a deep recession. Funding from the IMF, accompanied by ECB bond purchases, would buy euro-zone countries some time to put political mechanisms in place for strong fiscal discipline.