G20 to Europe: “Show Us the Money”

G20 to Europe: “Show Us the Money”

Leading economies told Europe to put up extra money in order to fight against its debt crisis if it targets to generate more assistance from the rest of the world.

Countries within the Euro zone pledged on Sunday at a Group 20 meeting of finance leaders to reconsider the strength of their bailout fund in March, which would encourage other G20 countries to give more funds to the International Monetary Fund.

Europe's largest economy, Germany, met intense pressure to support enlarging the region's war chest.  But facing political difficulties at home, it has sent conflicting signals over whether it was ready to move.

British finance minister George Osborne is certain that the G20 requires a clear euro-zone commitment.

"We have to see the color of the euro zone’s money first - and, quite frankly, that hasn't happened. Until it does, there's no question of extra IMF money from Britain or probably anyone else," he said.

The G20 is trying to obtain massive international resources worth nearly $2 trillion - including existing and new funds - by late April. This action would help draw a line under the financial crisis that erupted in 2008 when Lehman Brothers collapsed, which underscored the deepest U.S. recession since the 1930s and now has included Europe's deeply indebted countries.

However, the world economic recovery remains unstable and threats remain high that it could stumble, the G20 finance officials said in the announcement.

Posted by James Fried on Tuesday February 28 2012, 3:12 AM EDT. Ref: CNN. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0