The Group of Twenty nations urged more efforts by Europe to contain the debt crisis during Monday's meeting at Los Cabos in Mexico, while the BRICS nations vowed to step up their contribution to the International Monetary Fund in order to support Europe to fight the turmoil.
Eurozone members should "take all necessary policy measures" to safeguard the stability of the single currency bloc, reports said citing the G20 draft communique, to be released at the end of the G20 meeting on Tuesday.
According to the communique, G20 leaders have prepared a coordinated global action plan to deal with the Eurozone crisis and slowing global growth. The plan reportedly aims to boost economic growth and job creation.
The BRICS, consisting of Brazil, Russia, India, China and South Africa, acknowledged the need to provide more resources for international financial organizations, particularly the International Monetary Fund and the World Bank. Russia and India have already pledged $10 billion each.
Mexican President Felipe Calderon on Monday met German Chancellor Angela Merkel. The two leaders cited the importance of resisting the adoption of protectionist measures and of promoting trade liberalization as an effective means to strengthen economic growth and employment.
Now is the time "to make sure that all of us join to do what's necessary to stabilize the world financial system, to avoid protectionism, to ensure that we are working hand-in-hand to both grow the economy and create jobs while taking a responsible approach long term and medium term towards our fiscal structures," US President Barack Obama said in a press statement after his meeting with Calderon.
Ahead of the G20 summit, European Commission President Jose Manuel Barroso said he expects the G20 leaders to support and to express their confidence in the steps already taken by Europe. "We are taking immediate steps to boost growth through targeted investment and we are pursuing important structural reforms."
He noted that the European Union is working to build a banking union and deepen fiscal integration, while enhancing euro governance. The Commission will be ready this autumn to make proposals for more effective and integrated banking supervision, a common deposit guarantee system and an integrated banking resolution scheme.
"As G20 leaders, we all need to make ambitious and responsible contributions to remove obstacles to growth and tackle the unacceptable high levels of unemployment," he added. Barroso also urged the G20 to consider a Financial Transaction Tax at global level.
by RTT Staff Writer
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