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CANNES, France: Leaders of the world’s 20 most powerful economies Friday pushed Europe into acting to stop Italy following Greece into a debt crisis, but failed to come up with new funds to boost the IMF war chest.
While the G20 summit agreed in principle to increase IMF funding, the leaders failed to come up with any precise figure or timetable, kicking the issue down the road.
Addressing a news conference here, President Barack Obama said the US economy is growing “way too slow” but that G20 leaders have made progress at getting their countries on a firmer footing.
Global stocks and the euro fell as new doubts about Europe’s bailout package overshadowed signs of improvement in the US labor market.
The risk premium on Italian bonds shot up to a new record and euro zone stock markets tumbled, with London’s FTSE-100 index closing down 0.33 percent, Paris’ CAC-40 down by 2.25 percent and the Frankfurt DAX by 2.72.
Nor was there any let-up in pressure on debt-laden Greece, whose ongoing political and economic crisis still hung heavily over Cannes’ rain-lashed seafront summit venue, as an example of the threat facing Italy.
Amid pressure from the US and major emerging nations, Italy accepted a humiliating deal to put its economy under international surveillance in a bid to restore market confidence.
Italian Prime Minister Silvio Berlusconi confirmed Italy had asked for the International Monetary Fund to monitor its economic reforms, but said that he had turned down an offer of financial aid as it “wasn’t necessary.”
While the G20 summit agreed in principle to increase IMF funding, the leaders failed to come up with any precise figure or timetable, kicking the issue down the road.
Addressing a news conference here, President Barack Obama said the US economy is growing “way too slow” but that G20 leaders have made progress at getting their countries on a firmer footing.
Global stocks and the euro fell as new doubts about Europe’s bailout package overshadowed signs of improvement in the US labor market.
The risk premium on Italian bonds shot up to a new record and euro zone stock markets tumbled, with London’s FTSE-100 index closing down 0.33 percent, Paris’ CAC-40 down by 2.25 percent and the Frankfurt DAX by 2.72.
Nor was there any let-up in pressure on debt-laden Greece, whose ongoing political and economic crisis still hung heavily over Cannes’ rain-lashed seafront summit venue, as an example of the threat facing Italy.
Amid pressure from the US and major emerging nations, Italy accepted a humiliating deal to put its economy under international surveillance in a bid to restore market confidence.
Italian Prime Minister Silvio Berlusconi confirmed Italy had asked for the International Monetary Fund to monitor its economic reforms, but said that he had turned down an offer of financial aid as it “wasn’t necessary.”
