Failed G20 summit slips euro zone further in the depth of crisis

The G20 meeting of the world's most powerful government leaders on the 3^rd and 4^th of November, as it could be predicted, was not a success. The discussions were hijacked by the Greek crisis. George Papandreou's call for a referendum on the euro zone bailout package - additional loans would lead to even more cuts - infuriated European leaders and led to the withdrawal of the package. So the Greek deal, first packaged on 21 July, remains up in the air. The G20 leaders failed to agree on concrete measures to solve the euro zone crisis, and produced no new initiatives to stimulate growth in the world economy. It was the latest in a series of dysfunctional G20, European Union (EU) and other summit meetings that have promised decisive solutions, but failed to deliver. It was agreed in principle to increase International Monetary Fund (IMF) made available to intervene and support debt-crisis countries like Italy, however, the US and China refused to promise definite amounts. China said: European governments would have to take responsibility for the euro zone crisis. On this ground, it declined to provide more capital for the European Financial Stability Fund, or any other instrument designed to rescue European governments. Germany, however, being the strongest euro zone economy, refuses to increase its support for the weaker euro zone countries. Meanwhile, big bond market investors, are pushing up the borrowing rates of countries like Italy to unsustainable levels. Every day the G20, IMF or EU leaders fail to act, the euro zone slides further in to the depth of a systemic crisis, with government defaults and bank failures, it all leads to a new slump in the world economy.

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