Fresh steps planned for debt crisis

EUROPEAN policymakers showed signs they were preparing new steps to cope with the region’s debt crisis even as talk of a possible Greek default gained pace yesterday.

World stock markets — which had plunged to a 14-month low on fears the eurozone crisis was not under control — steadied after European Central Bank (ECB) officials said they would use their firepower to help the banking system through the crisis.

Finance ministers and central bankers from around the world, in Washington for semi-annual policy discussions, have turned up the heat on Europe to do more to prevent Greece’s debt crisis from infecting the world economy.