World powers confront eurozone debt crisis

Under pressure from China and US to put EU's house in order:

France: The leaders of the world’s most powerful economies flew into France on Thursday for a G20 summit to confront a European debt crisis that threatens to plunge the global economy into renewed recession.

Under pressure from economic powerhouses China and the United States to put their own house in order, European leaders issued debt-laden Greece with an ultimatum on the eve of the summit in the French resort of Cannes.

President of the United States Barack Obama arrived in France early Thursday and was to meet European leaders before the start of the summit proper.

Late Wednesday, summit host President Nicolas Sarkozy and German Chancellor Angela Merkel warned Greece would not get “one more cent” from the EU and the IMF unless Athens abides by the terms of a rescue deal agreed last week.

Without its next eight-billion euro transfer, observers warn, Greece would face problems paying government salaries and a messy debt default within weeks.

After talks with Greece’s beleaguered Prime Minister George Papandreou, the visibly angry eurozone leaders insisted Wednesday that if he wanted to hold a referendum that he must do so as soon as possible to clear up uncertainty. Thursday, AFP