Paris:G20 ministers urge Europe to contain debt crisis
Laaska News Oct. 16,2011
G20 finance ministers and central bank governors have urged European countries to take comprehensive measures and stabilize financial institutions.
A joint statement was issued in Paris on Saturday at the end of the 2-day meeting.
The statement expresses strong concern over the impact of the European debt crisis on the world economy. It says the meeting came at a time of heightened tensions and significant downside risks for the global economy.
Participants welcomed eurozone approval of a plan to expand the European Financial Stability Facility to support member countries in fiscal trouble.
The statement urges European Union leaders to work out a comprehensive plan at their summit on October 23rd. It says the plan should include strengthening of the bailout fund and an increase in capital to stabilize banks.
The statement says the G20 will cooperate to secure adequate resources for the International Monetary Fund and stabilize the financial system. It calls on the IMF to consider new ways to provide short-term funds to countries facing a debt crisis.
The statement also reiterates the G20′s view that excess volatility and disorderly movement in exchange rates may negatively affect economic and financial stability.
Attention is now focused on whether European nations will take concrete measures recommended by the G20 ministers to stop the debt crisis from spreading.