The European Union was last night poised to increase an emergency fund for vulnerable member states by at least €60bn ($77bn) and was considering new government-backed loan guarantees to stabilise the eurozone before financial markets open today.

EU finance ministers, meeting in Brussels, appeared likely to expand a €50bn balance of payments facility that the EU used in 2008 to help Latvia, Hungary and Romania, three non-eurozone countries. The facility, which would be increased by at least €60bn, would be extended to cover all 16 eurozone members and any assistance would carry conditions set by the International Monetary Fund.

The second proposal was a stabilisation mechanism that would comprise bilateral loan guarantees between eurozone countries and would come on top of the €110bn IMF and EU rescue plan approved by eurozone leaders for Greece on Friday. The proposal, however, was hanging in the balance last night after Alistair Darling, Britain's chancellor of the exchequer, expressed opposition to any EU-wide scheme that might make the UK liable for the debts of eurozone countries.