G20 seeks solution to debt crisis

The G20 leaders are set to continue their talks on Friday as they seek to find a sustainable solution to the eurozone debt crisis.

      They are expected to discuss ways to increase the firepower of the International Monetary Fund (IMF).
The hope is that increased resources will help the IMF to support struggling eurozone economies, such as Greece.
There have also been calls for a "financial firewall" to protect vulnerable economies such as Italy.
The US President, Barack Obama, said on Thursday that resolving the eurozone debt crisis was "the most important aspect of our task over the next two days".
Greek threat The second day of the G20 meeting will also see the Greek prime minister George Papandreou face a confidence vote in parliament.
The opposition as well as several government MPs have called for Mr Papandreou to quit after his decision on Monday to hold a national vote sparked a turmoil on financial markets and upset his German and French counterparts.

Some members from his own party, including the finance minister said that they were against the referendum.

On Thursday, the prime minister said he would scrap the move if the conservative opposition party voted to pass the bailout package in parliament.
However, there are fears that he may lose the confidence vote and Greece may have to hold fresh elections, a move which may further delay the implementation of a Greek bailout package.
Eurozone leaders have already withheld 8bn euros ($11bn; £7bn) of fresh rescue loans to Greece and there are fears that further delays may see the government run out of cash and default on its payments.
Mixed messages In other developments on the first day of the two-day G20 summit in Cannes:

• President Obama warned that the eurozone financial crisis threatened to engulf the world
• Italy is to commit to further cuts to its debts and its annual borrowing rate according to a draft communique
• China indicated that it would not consider providing money to the eurozone bailout fund until the situation in Greece has been resolved
• Chinese President Hu Jintao also played down the chance of allowing the value of the yuan to rise, contradicting more optimistic remarks by the US
• India and Canada expressed their opposition to the idea of a tax on financial transactions, something strongly backed by eurozone governments
• the G20 agreed to look at the credit default swaps markets, which has been blamed by some European leaders for exacerbating the eurozone debt crisis

'Health and vigour' Meanwhile UK Prime Minister David Cameron has called for "political will" to solve the current economic woes.
In a report to the summit, Mr Cameron said willingness to act in a united way was the way forward.
"We have the machinery that we need already," he said.
"What we need above all is the most precious and intangible commodity - political will.
"Political will to act together, and to build the consensus we need to confront squarely the problems before us so that we can return our economies to health and vigour."

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