October 31, 2011Leaders of the Group of 20 (G20) will gather in southern France on Nov. 3-4.
Global imbalance, international organization's reform and development are initially decided topics on the agenda, but since this summer the eurozone debt crisis increasingly weighs down prospects of European economies and adds to global uncertainties, the Europe's headache is predicted to dominate the summit.
Euro Area Debt
Inviting strong, sustainable and balanced growth, strengthening the international financial regulatory system and reforming relevant international organizations are traditional G20 topics tasked from the Pittsburg Summit. France has prioritized international currency system reform, controlling price volatility of major commodities and global governance since it took over the presidency.
France added in September the debt issue to the G20 agenda in hope to win wider coordination on financial policies as the Greek debt issue showed signals to affect core European economies via banking system and tumbled global financial market.
Both western developed countries like the United States and Britain and emerging economies called on eurozone leaders to take immediate and effective actions to scant their debt and soothe the market.
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In the wake of series of plunges of stock markets, eurozone leaders' agreement on Oct. 26 breathed finally new hope and boosted high the euro against the U.S. dollar. However, many economists and analysts deemed that more steps and details should be followed up.
According to a U.S.-based independent think tank, Europe's euro debt crisis is more of a structural problem than just fiscal and financial matter.
As a result of debt accumulation over decades, the European debt issue is too complex and serious for the continent to solve by itself although the core resolution lies in structural reform within the one-currency bloc.
"Europe's leaders must further commit to far greater integration though a fiscal union, deeper economic coordination and move toward political union or face the collapse of the euro," the think tank said in an outcome statement released after a G20-focused conference in Paris.
German Chancellor Angela Merkel also underscored that the Oct. 26 bailout package agreeing to recapitalize European banks and increase the firepower of the European bailout fund EFSF was only a beginning of a new phase.
G20 summit can be a perfect platform for wider coordination as the host of French President Nicolas Sarkozy wished given that eurozone leaders chimed with the International Monetary Fund (IMF) that outsiders' help should be considered to sustain the euro via some special purpose vehicle.
Recent discussion have enrolled fast-growing emerging countries in the savers list for the eurozone debt.
China and South Africa have both promised to take joint efforts to help make the summit a success.
However, no specific role is decided for emerging countries yet as the tricky reality is beyond what political willingness can handle by itself.
"Dynamic growth in emerging economies definitely contributes global growth but they are not strong enough to bail out the global economy," Eric Le Coz, deputy director of Paris-based investment company Carmignac Gestion told Xinhua.
At the G20 summit to be held in France, the eurozone will present its new plan to recapitalize and strengthen EU banks, World Bank Group President Robert Zoellick noted in an article carried on the website of the Washington Post.
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