Chancellor Alastair Darling is to oppose any new bail-out plan for the single currency that exposes Britain to the risk of massive hand-outs to debt defaulters.
He is attending emergency talks in Brussels designed to agree a new "European stabilisation mechanism" in another desperate bid to convince world markets that the euro is a stable and credible currency.
One plan, would allow the European Commission to borrow on behalf of a member state in financial trouble, using the EU budget as collateral.
The other, more controversial scheme would involve setting up an EU version of the International Monetary Fund, with all member states exposed to risk from national coffers if a member state defaults on loans backed by its EU partners.
The second option is opposed by the UK - but Mr Darling needs to consult his current Tory shadow George Osborne and his Lib-Dem counterpart Vince Cable under the courtesies of hung parliament etiquette.More....