No new euro zone money for debt crisis at G20

Fri Nov 4, 2011 3:52pm EDT
 
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By Luke Baker and Giselda Vagnoni

CANNES, France (Reuters) - The euro zone won verbal support but no new money at a G20 summit on Friday for its tortured efforts to overcome a sovereign debt crisis, while Italy was effectively placed under IMF supervision.

Leaders of the world's major economies, meeting on the French Riviera, told Europe to sort out its own problems and deferred until next year any move to provide more crisis-fighting resources to the International Monetary Fund.

"There are hardly any countries here which said they were ready to go along with the EFSF (euro zone rescue fund)," German Chancellor Angela Merkel told a news conference.

Potential sovereign investors such as China and Brazil wanted to see more detail before they made any firm commitment to put money into the bailout fund.

Global stocks and the euro fell as doubts resurfaced about Europe's financial rescue package.

U.S. President Barack Obama joked he had learned a lot in two days about the complexity of the EU's "laborious" decision-making process but said he was confident Europe had the capacity and the right plan to meet the challenge. The key now was rapid implementation.

"They're going to have a strong partner in us, but European leaders understand that what is ultimately important is to have a strong signal from Europe that they are standing behind the euro," he told a news conference.

But Australian Prime Minister Julia Gillard summed up the mood of many summit participants when she said: "Europe needs to get its own house in order."   Continued...