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G20 has confidence in eurozone

Updated: 2012-06-21 10:57
By Zhang Yuwei in Los Cabos, Mexico, and ZHOU WA in Beijing ( China Daily)

G20 has confidence in eurozone

G20 has confidence in eurozone

British Prime Minister David Cameron and other world leaders wait for the beginning of the first session of the G20 Summit in Los Cabos, Mexico, on Monday.[Photo/Reuters] 

The G20 is showing its support for eurozone countries, said analysts, while G20 members from Europe vowed to work on concrete steps to combat the debt crises.

European nations will take all necessary measures to safeguard the integrity and stability of the eurozone, improve the functioning of financial markets and break the feedback loop between sovereign debts and banks, according to the statement released at the end of the summit in the Mexican resort of Los Cabos on Tuesday.

The leaders welcomed Spain's plan to shore up its banking system and the EU's support for Spain's authority to restructure its finances. Leaders said they will work with the next Greek government to ensure Greece remains on the path of reform and sustainability within the eurozone, though no details were laid out.

World leaders concentrated on the urgent debt crises in the eurozone countries and tried to find solutions during the summit, as the monetary union is facing the possibility of collapse due to debt problems.

International Monetary Fund chief Christine Lagarde hailed the EU's measures to combat the debt crises, saying the seeds of a pan-European recovery plan were planted, according to Reuters.

"It doesn't matter if it takes a long time, it has got to be done well," she was quoted as saying, adding that immediate measures and longer-term ones must be pursued in parallel.

G20 leaders now are waiting for an EU summit next week at which European officials say they will launch the long process of deeper integration, starting with a push for a banking union, with the aim of finalizing a broad plan by December, Reuters said.

The general statement sets out a positive political signal to the eurozone countries, said Qu Xing, an expert on international politics and economics and also the president of the China Institute of International Studies.

Compared with previous G20 communiques, the statement this time includes concrete measures for the eurozone countries to overcome their debt crises, said Qu.

Zhang Yuyan, an expert on global politics and economics with the Chinese Academy of Social Sciences, said countries need to reform macroeconomic policies and give up some of their fiscal sovereignty to solve the debt crises in the eurozone.

Outside the eurozone, developed and developing countries are facing the challenges of a bad economic situation.

"The global economy remains vulnerable, with a negative impact on the everyday lives of people all over the world, affecting jobs, trade, development and the environment", said the statement from G20 leaders.

According to the declaration, G20 endorses urgently combating unemployment through appropriate labor market measures and fostering the creation of decent work and quality jobs, particularly for youth and other vulnerable groups, who have been severely hit by the economic crisis.

"We also commit to intensify our efforts to strengthen cooperation in education, skills development and training policies, including internship and on-the-job training, which support a successful school-to-work transition," said the statement.

Foreign Minister Yang Jiechi told reporters that Hu's presence at the G20 Summit helped the global community to reach a consensus and lift confidence in the global economy.

It has also proved that China is a responsible player when it comes to development and cooperation, he said.

Yang added that Hu's presence at successive G20 summits since 2008 has played a constructive role in pushing for the stabilization and recovery of the world economy.