G20 summit to focus on euro zone debt crisis: EU

Reuters News
Posted: Oct 10, 2011 6:43 AM
G20 summit to focus on euro zone debt crisis: EU

BRUSSELS (Reuters) - The euro zone debt crisis is likely to be the focus of the summit of the leaders of the world's 20 biggest developing and developed economies (G20) in early November, because of concern about the dangerous spillovers it may have on the rest of the world, top European Union officials said in a letter on Monday.

European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy said in a letter to other EU leaders, however, that the summit, to be held on Nov 3-4 in Cannes, France, should also discuss risks to global growth from the United States and emerging economies.

"Europe will be in the focus of the Cannes summit," the letter from Barroso and Van Rompuy said.

"Our G20 partners' perception is that if Europe does not solve its sovereign debt crisis there will be dangerous spillovers on the global economy. We need to show them that the European Union is determined to do whatever necessary to overcome the current difficulties," the two EU leaders said.

They said that many of the economic imbalances that existed before the euro zone debt crisis were still there, indicating China's undervalued yuan currency and lack of savings in the United States.

"We therefore need to ensure a balanced discussion of the various risks to the global economy, including those coming from the U.S. and from emerging market economies. All countries need to make a contribution," the letter said.

(Reporting by Jan Strupczewski; editing by Rex Merrifield)