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(Image source: G20 Mexico)
BY STEVEN SPARKMAN ANCHOR MEGAN MURPHY
The G-20 summit kicked off Monday in Los Cabos, Mexico. World leaders are meeting to discuss
economic and global issues. The BBC reports — the continuing eurozone crisis is at the
top of the list.
“They’ll face lots of questions about what action they’re taking to tackle the
continent’s debt crisis. But all of the leaders face one common challenge, and that’s
how to promote economic growth.”
Of course, there are lots of ideas on how to promote growth. For instance, a writer
for the Wall Street Journal blames structural problems for the crisis, and says the G20
should focus on reform.
“In too many countries, inefficient companies are shielded from market pressures, wages
are too high, basic infrastructure is lacking. Employment rules and trade-union pressure
frustrate efforts to change working practices or cut costs. Broken banking systems can't
provide working capital or finance viable projects.”
But a writer for the Economic Times of India says austerity reforms are actually causing
the slump, and the G20 should focus on pro-growth stimulus.
“Most countries ... cannot afford to borrow limitlessly and stimulate their economies.
But the sentiment that is building at the G20 is that recovery from the crisis necessitates
state spending and monetary intervention, not as a cookie cutter for all, but in countries
that are reeling under unemployment.”
What’s more, while markets briefly breathed a sigh of relief after the Greek elections,
an analyst from Bloomberg tells CNN, the world still isn’t convinced the eurozone is stable.
“Coming out of the G-20 what we want to see is that the world gets behind the idea
that voters have prevented Greece from jumping over a cliff.
But Fox News’ Stuart Varney points out, that commitment comes on the back of bailouts
from an increasingly-reluctant Germany.
“Everybody’s putting pressure on the Germans, ‘Please, please go along with at least an
intermediate-term bailout.’ But the Germans are saying, ‘Look, is it worth it?’”
And, if that’s not quite pessimistic enough, a writer for the Guardian points out the G20
doesn’t have a track record of producing binding agreements.
“It would be naive to imagine that the G20 is preparing a blueprint for global recovery
or that the euro zone crisis will soon be over. … [A]t the moment the global economy
can be divided into nations that are in recession, about to go into recession or rapidly losing
momentum. For the moment there are no good outcomes, just bad and really bad.”
The summit will continue Tuesday, and will include also include discussion on the UN’s
peace plan for Syria.