Euro zone crisis to dominate G20 meeting
PARIS. October 14. KAZINFORM The euro zone debt crisis will dominate a summit of G20 finance chiefs and central bank heads in Paris, with a downgrade of Spain's credit rating highlighting the risk of a much larger economy than Greece coming under threat; Kazinform refers to China Daily.
French and German officials are trying to put flesh on the bones of a crisis resolution plan in time for a European Union summit on October 23.
Fears about the damage a default by Greece - and possibly others - could inflict on the financial system have driven a confidence-sapping bout of market volatility since late July, with global stocks falling 17 percent from their 2011 high in May.
"This meeting takes place in a context where the absolute priority for the success of the G20 is to find the elements for the stability of the euro zone," a source at the French finance ministry said.
Underlining the challenge for European policymakers, Standard and Poor's cut Spain's long-term credit rating, citing the country's high unemployment, tightening credit and high private sector debt.
With impatience growing, finance chiefs from outside the bloc are expected to speak frankly.
"This meeting is an important staging point before (a November 3/4 G20 leaders summit in) Cannes and a valuable opportunity to put pressure on the euro zone," said a non-euro zone G20 delegate.
Canadian Finance Minister Jim Flaherty set the tone late on Thursday, telling reporters before leaving Ottawa that euro zone actions were short of what is needed; Kazinform cites China Daily.
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