UK Likely to Veto Short-Term EU Loan for Greece

Britain is likely to block a short-term rescue loan for cash-strapped Greece if Brussels attempts to bail out Athens with UK money, a source in the European Parliament told RIA Novosti on Thursday.

BRUSSELS (Sputnik) — The European Commission suggested a short-term bridge loan worth at least 7 billion euros ($7.6 billion) to assist Greece, due to make payments on another batch of loans to the European Central Bank next week.

Brussels wants to use the European Financial Stability Mechanism (EFSM), a temporary crisis resolution mechanism funded by all 28 EU nations. Britain, which is not part of the euro, argues that funds should be allocated through the Eurozone-wide European Stability Mechanism (ESM).

"The United Kingdom may veto a bridge loan for Greece through the EFSF since it believes that money should be disbursed through the ESM instead," the source in the European Parliament said.

Contributions of EU member states to the EFSM fund depend on their respective populations and national income.