The BRICS nations, (Brazil, Russia, India, China and South Africa) have agreed to cooperate with the IMF with regards to creating a multi-billion euro bailout fund for the Eurozone.

The IMF is in the process of creating a $430bn bailout fund which it is hoped will be enough to save the Eurozone and the euro. The headlines over the last few weeks have been dominated by the likes of Spain and Italy with their economies in dire need of additional funding and outside help.

The BRICS have agreed to contribute $75bn between the five members although China, with $43bn, is by far and away the largest contributor amongst the BRICS members.

There is intense speculation that the German government is also softening its stance with regards to the potential purchase of troubled economy bonds in the money markets. This, together with the IMF bailout fund, may or may not be enough to avert a catastrophe in Europe and a disaster for the worldwide economy.