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| Photo: FreeDigitalPhotos.com |
Suffice it to say, there is significant amount of pressure on national economies as the issue of income inequalities and unemployment across global markets have gained voice in Occupy Wall Street and 99 Percent slogans. In reviewing public G20 statements after the Paris meeting, the main agenda among the G20 attendees related to euro zone worries.
What follows are some of the statements issued by the G20 from the Paris meeting:
"We, the G20 Finance Ministers and Central Bank Governors, met at a time of heightened tensions and significant downside risks for the global economy that need to be addressed decisively to restore confidence, financial stability and growth," according to a statement reported by The Wall Street Journal.
"We have progressed in delivering the commitments we made three weeks ago in Washington DC. In particular, we welcome the adoption of the ambitious reform of the European economic governance. We also welcome the completion by Euro area countries of the actions necessary to implement the decisions taken by Euro area leaders on 21 July 2011 to increase the capacity and the flexibility of the EFSF (European Financial Stability Facility). We look forward to further work to maximize the impact of the EFSF 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."
According to Francois Baroin, France's Finance Minister, the G20 discussed elements of the E.U.'s final decisions related to the Greek financial crisis, which will be addressed by heads of state and government at the G20 summit in Cannes in November. "I have to tell you in truth that the results of the European Council on October 23 will be decisive," said Baroin.
U.S. Treasury Secretary Timothy Geithner expressly supported increasing IMF financial support to Europe. "The IMF has a substantial arsenal of financial resources," said Geithner, "and we would support further use of those existing resources to supplement a comprehensive, well-designed European strategy alongside a more substantial commitment of European resources."
"Not only Saudi Arabia, but members of the G20, are convinced that the challenge facing the global economy is the European challenge in the short term," states Saudi Central Bank Governor Muhammad Al-Jasser from Paris.
Bank of Japan Governor Masaaki Shirakawa stated that "Japan's economy is picking up but we're focusing on downside risks given heightening global economic uncertainty and the effect of yen rises." Juan Azumi, Japan's Finance Minister, stated that "Europe needs to get its act together because unless the crisis is put to an end, it will start to affect emerging economies which have enjoyed strong growth."
Emerging market economies were encouraged by the G20, in part, to adjust macroeconomic policies and contain inflationary pressures as needed. "Surplus emerging market economies will accelerate the implementation of structural reforms to rebalance demand toward more domestic consumption, supported by continued efforts to move toward more market‐determined exchange rate systems and achieve greater exchange rate flexibility to reflect economic fundamentals," according to the G20 Paris statements.
From November 3-4, 2011, the 2011 G20 Cannes Summit will serve as the sixth meeting of the heads of government from the richest 20 global economies. The meeting will be held at the Palais des Festivals in Cannes, France. Mexico will chair the G20 Summit at Los Cabos in June 2012.
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