Open

Coming up

Don't miss

Replay


LATEST SHOWS

FASHION

Paris, Haute Couture Fall/Winter 2014-2015.

Read more

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

AFRICA NEWS

2014-07-11 21:47 AFRICA NEWS

Read more

MEDIAWATCH

Finally, a good use for new app "Yo"

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

FRANCE IN FOCUS

Politics: parties under pressure

Read more

FOCUS

In Burma, the rise of radical Buddhism

Read more

  • UN Security Council calls for Israeli-Palestinian ceasefire

    Read more

  • The third-place playoff: the World Cup game no one wants to play

    Read more

  • France’s Kadri wins eighth stage at Tour de France

    Read more

  • Legal challenge to French mayor’s ban of Muslim hijab on beach

    Read more

  • Last of the Ramones, Tommy Ramone, dies aged 62

    Read more

  • Video: Outrage in wake of deadly Casablanca buildings collapse

    Read more

  • Iraqi forces ‘executed prisoners in reprisal’ for ISIS killings

    Read more

  • Ukraine promises retaliation after rebel assault

    Read more

  • Putin revives old Cuban flame and eyes Latin American minerals

    Read more

  • Kerry holds all-night talks with Afghan presidential rivals

    Read more

  • Amazon snubs French free delivery ban with one-cent charge

    Read more

  • Cleveland's NBA fans hail 'return of king' LeBron James

    Read more

  • Exclusive: an unlikely victim of the 'War on Terror'

    Read more

  • Magnitude 6.8 quake, small tsunami hit east Japan

    Read more

  • Suspect in Brussels Jewish Museum shooting drops extradition appeal

    Read more

Americas

G20 nations eye $2 trillion April rescue deal

©

Text by News Wires

Latest update : 2012-02-26

Members of the G20 group of nations meeting in Mexico worked for a second day on Sunday to line up an April deal on a rescue package worth some $2 trillion aimed at preventing the eurozone sovereign debt crisis from spreading.

REUTERS - The world's leading economies worked on Sunday to line up a deal in April on a second global rescue package worth nearly $2 trillion to stop the euro-zone sovereign debt crisis from spreading and putting at risk the tentative recovery.

Germany said it would make a decision some time in March on strengthening Europe's bailout fund, a move other Group of 20 countries say is essential to clear the way for throwing extra funds into the International Monetary Fund.

The two actions are part of the G20's efforts to build up massive international resources by the end of April - when the group next meets - and convince financial markets they can stem the euro-zone's deep problems.

It would mark their boldest effort since 2008, when the G20 mustered $1 trillion to help rescue the world economy.

German Finance Minister Wolfgang Schaeuble said European leaders will tackle the adequacy of the region's firewall during March. The issue will be on the agenda of a European Union summit next week.

"But the month of March goes from March 1 to March 31. It will be reviewed again, also in the light of the developments that have since occurred, whether the stated dimension of the (European bailout) mechanism is enough or not," he told reporters.

Berlin's willingness to discuss the size of Europe's firewall marks an important shift.

Facing political opposition to a second Greek bailout in its parliament, it has balked at enlarging Europe's rescue fund on the grounds that it would undermine efforts to impose fiscal discipline on indebted countries.

The softening of its stance came as Schaeuble said he assumes the Greek bailout package will win Bundestag support on Monday.

An agreement by Europe to merge its temporary and permanent bailout vehicles would create a $1 trillion war chest and open the door for other G20 countries to meet the IMF's request for $500-$600 billion in new resources, on top of its current $358 billion in funds.

Put together, this would total around $1.95 trillion in firepower.

But the G20 has no intention of easing its pressure on Europe by giving it a strong signal now that new IMF money is in the bag. Its communique when two days of ministerial meetings end on Sunday will merely state that the world's leading economies will review the resources of the IMF in April without setting a date for a deal, G20 officials said.

But they left no doubt the cash is needed to calm markets and secure economic growth. "In order to overcome the crisis, you have to get ahead of the curve and have a big enough bazooka," said Olli Rehn, European Commissioner for Economic and Monetary Affairs.

Japan's Finance Minister, Jun Azumi, said his country stood ready to contribute IMF funds once Europe has acted.

"I expect debate on strengthening of the IMF lending capacity will progress on condition that the problem of Europe's debt crisis is put to an end by the G20 meeting in Washington in April," he said.

Oil price threat

Finance chiefs in their communique on Sunday will also cite rising oil prices driven by geopolitical risks as a threat to a tentative world recovery that is showing signs of strength, diplomatic sources said.

The price of oil vaulted over $125 a barrel on Friday, the highest level in nearly 10 months on concerns over Iran's nuclear ambitions.

Oil-producing members of the G20 said on Saturday they would take measures to avoid a rise in petroleum prices from hurting the world economy, Italy's deputy economy minister said.

Date created : 2012-02-26

  • G20 CANNES SUMMIT

    G20 leaders urge Europe to settle its own problems

    Read more

  • G20 CANNES SUMMIT

    G20 leaders struggle to overcome euro crisis

    Read more

Comments

COMMENT(S)