Europe vows action to G20 on debt crisis

‘We will maximize EU bailout fund to avoid contagion’ :

FRANCE: Europe vowed to its G20 partners Saturday that it would take swift and decisive action to resolve a debt crisis that is threatening to drag the world economy back into recession. Speaking after a meeting of G20 finance ministers and central bankers in Paris, French Finance Minister Francois Baroin said the eurozone would present answers as soon as next weekend, when EU leaders meet for a summit in Brussels.

“The results of the October 23 summit will be decisive,” Baroin said. “We are acting resolutely to maintain financial stability.”

The G20 finance chiefs welcomed Europe’s efforts but made it clear more needed to be done.

“We look forward to further work to maximise the impact of the (European bailout fund) in order to avoid contagion, and to the outcome of the European Council on October 23 to decisively address the current challenges through a comprehensive plan,” they said in a joint statement.

US Treasury Secretary Tim Geithner said they “heard encouraging things from our European colleagues in Paris about a new comprehensive plan to deal with the crisis on the continent.” He said the plan includes a much more substantial financial firewall to ensure that the governments of Europe can borrow at sustainable interest rates, a broad recapitalisation of banks, further support for a sustainable programme in Greece and steps toward fiscal union.

“The plan has the right elements,” he said, but added “they clearly have more work to do on the strategy and the details.”

Brazilian Finance Minister Guido Mantega said the G20 nations were united behind them “but the solutions are in the hands of the Europeans”.

German Finance Minister Wolfgang Schaeuble said Europeans were aware of their responsibility.

“We will resolve our problems, we are determined to take decisions by Cannes,” he said, in reference to a summit of G20 leaders in the French city on November 3 and 4.

As the ministers met, tens of thousands were taking to the streets of cities across the world for a day of protest inspired by the “Occupy Wall Street” and “Indignant” movements, with clashes erupting in Rome as protesters set fire to a government office and riot police fired tear gas.

AFP