By Jan Strupczewski
December 18, 2011 2:40 PM EST
(Reuters) - The Eurozone will pursue measures to tackle its sovereign debt crisis this week by offering more cash to the IMF and long-term liquidity to banks, while moving towards tighter fiscal rules, after ratings agency Fitch cast doubt on its ability to forge a decisive response.
"We all know that Europe has not been able to convince markets that its governance set-up and its measures against the crisis were enough," Italy's Deputy Economy Minister Vittorio Grilli said in a newspaper interview published on Sunday.
"More integration and more effective instruments are needed. We are not yet there," he told Il Sole 24 Ore.
Eurozone leaders agreed on Dec. 9 to write into national constitutions a rule that budgets have to be balanced or in surplus in structural terms. If they are not, automatic corrective measures would follow.
Such rules would sharply limit government borrowing, bring down debt and, Eurozone politicians hope, help restore market trust in the sustainability of public finances.
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