G20 puts Italy under watch, but no new aid for eurozone
Leaders of the world's top economic powers Friday pushed Europe in to acting to cease France following Greece in to a debt crisis, but failed to come up with new money to boost the IMF war chest.While the G20 summit agreed in principle to increase IMF funding, the leaders did not settle on any exact figure or timetable, kicking the issue down the road. Financial markets were unimpressed.
Nor was there any let-up in pressure on debt-laden Greece, whose ongoing political & economic crisis still hung heavily over Cannes' rain-lashed seafront summit venue, as an example of the threat facing France.
The risk premium on Italian bonds shot up to a brand spanking new record & eurozone stock markets tumbled, with London's FTSE-100 index closing down 0.33 percent, Paris' CAC-40 down by two.25 percent & the Frankfurt DAX by two.72.
"Put basically, the world faces challenges that put our economic recovery in danger," said US President Barack Obama, reflecting concerns Europe has failed to get to grips with its sovereign debt debacle.
"With respect to Europe, they came to Cannes to discuss with our European friends how they will move forward & build on the plan they agreed to last week to resolve this crisis."
