G20 summit ends in failure to agree strategy on euro debt crisis
Friday, 04 November 2011 04:47
The G20 summit of world leaders has ended in Cannes with a lack of a substantial and comprehensive agreement on how to deal with the problems that face the global economy after two days of talks that have been dominated by the euro debt crisis and the developments in Greece.
The G20 has agreed to increase the resources available to the International Monetary Fund (IMF) but has said the specific steps behind the agreement won’t be finalised until February.
France has been unable to persuade its global partners to agree to specific amounts on how to increase the eurozone’s financial safety mechanism.
After the meeting the UK Prime Minister, David Cameron said: "There are agreements on both the eurozone and the IMF. The problem is not that there isn't a deal - the problem is that not all of the details have been put in place."
Christine Lagarde, Managing Director of the International Monetary Fund said: "The G-20 Leaders have reiterated the importance of implementing expeditiously the measures announced by the Eurozone on October 26.
“I welcome Italy's decision to invite the IMF to intensify our surveillance and monitoring work, to help support the major steps being taken by the government on both fiscal adjustment and structural reforms, she added.”
Lack of agreement has pushed up the cost of Italian borrowing and has also led to shares in Italy’s banks dropping in value today.
The future direction of Greece and its role within the European Union is dependent on the outcome of tonight’s vote of confidence on the Greek Prime Minister, George Papandreou, which has been timed to take place at midnight in order for the result not to affect the markets. Both the European and US stock markets will be shut.
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