TORONTO (Reuters) - Canadian Finance Minister Jim Flaherty said on Saturday that he does not expect the Europeans to produce a broad plan to resolve the euro zone debt crisis at the G20 summit next week.
“I hope, particularly in the bilateral sidebar meetings, we can make some progress with our European allies, with the Germans and the others,” he said during an interview on CBC Radio. “I’ve had conversations with some of them in the past few days, and I hope we can get them to the right place.”
Flaherty said he thought it was more likely the Europeans would reach an agreement at a meeting of the European Council at the end of this month.
The finance minister said the Conservative government’s contingency plan for dealing with the fallout from an intensifying European crisis would include some of the measures taken during the 2007-09 financial crisis to maintain liquidity within the Canadian system.
“We have an agreement with the Bank of Canada on how to move forward with some of these actions if we need to,” he said.
Flaherty said Ottawa would implement such a contingency plan if financial markets turned disorderly, creating a fresh credit crunch that threatened lending, investment and ultimately job creation.
Reporting by Frank McGurty; Editing by Jackie Frank