Gillard Urges Europe to Stabilise Economy

18 Jun

Julia Gillard

Australia’s PRIME Minister Julia Gillard and South Korean President Lee  Myung-bak have issued a joint statement urging “resolute action” by  Europe to address uncertainty in the global economy.
  Ms Gillard and Mr Lee will be among the G20 nation leaders to   gather in the Mexican resort city of Los Cabos Today and Tomorrow.
“We need a clear message from Europe that it is taking decisive  steps to stabilise and strengthen its banks,” they said.
“A crucial element of restoring confidence in Europe is  agreement on a  roadmap for the eurozone to underpin its monetary  union by a fiscal  union and a banking union.”
Ms Gillard landed  in Los Cabos on  Sunday, where she will  address a B20 business forum being held in the  sidelines of the  leaders’ summit.
The eurozone debt crisis will dominate the G20 summit.
All eyes will be on Greece on Sunday as its people go to the  polls to  determine whether to endorse a conservative government  committed to  economic and fiscal reform or a popular radical left  administration  which would likely see an exit from the euro.
Mr Lee and Ms Gillard backed Spain’s acceptance of financial   assistance, saying Europe should move quickly to ensure that its  banks  are “adequately capitalised and backstopped” because the  health of the  banking sector is key to economic growth and reducing  some of the risks preoccupying markets.
“Europe must have credible fiscal  consolidation plans to restore  fiscal sustainability, but it is also  essential that it has a  strategy for growth that includes policies  aimed at boosting  investment, freeing up product and labour markets,  deregulating  business, promoting competition and building skills,” they said.
They said the G20 summit should make progress in the  process of  reforming the International Monetary Fund, including  increasing IMF  resources by more than $US430 billion ($A430 billion),  and ensuring  the agency’s governance structure reflects “the shifts in  economic  influence”.
Australia last year pledged to double its IMF commitment.
“Economic growth and new jobs are crucial to improving people’s  livelihoods both now and for future generations … the world is  expecting the G20 to  deliver,” they said.

1 Comment

Posted by on June 18, 2012 in Business News, International News


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