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Concerns over Europes sovereign debt crisis top the agenda of this two-day summit, as well as plans to reinforce the International Monetary Fund. China and Japan are the two biggest candidates for increasing IMF resources through bilateral loans.
The debate over whether EU countries have contributed enough to emergency financial stabilisation funds to calm the sovereign debt fears continues.
While some stressed the importance of setting a larger fund, others questioned the necessity of reforming the global monetary system.
Charles Dallara, MD of Institute of Int'l Finance, said, "Reforming the global monetary system? What system? Forgive me if Im paraphrasing Mark (Carney, governor of the Bank of Canada). This is a profound rhetorical question. Do we really have a global monetary system?"
The European Union has urged the international community to pump more money into the IMF. The United States has made it clear that it will not participate in any IMF funding boost. Canada is reluctant too, unless the euro zone makes a bigger effort.
Timothy Geithner, US Treasure Secretary, said, " We are trying to make sure we work very hard at repairing the damage caused by the crisis but also set in motion reform that are really important for the long term health of the American economy ".
Emerging economies like China and Brazil were pushed into the spotlight, as they have weathered the current sovereign shock comparatively well.
China has voiced its willingness to step up involvement in resolving the European debt crisis.
Premier Wen Jiabao said this at the 14th China-EU Summit in Beijing earlier this month.
Wen Jiabao, Chinese Premier, said, "The Chinese side supports the EUs efforts to strengthen fiscal discipline. We hope the EU will continue to give a strong clear and positive message to the rest of the world."
Japanese Finance Minister Jun Azumi says his country is a willing contributor, but with caution.
Jun Azumi, Japanese Finance Minister, said, "With respect to the IMF, no discussion will take place before April. First we must observe what the Europeans are going to agree on within the framework of the IMF so that a contribution can be made, and what will be the complete size of those required financial resources, and how that is going to be distributed to a list of countries including China and Japan."
Emerging market economies like Brazil say they will give more money, if Europe first puts up more cash itself.
The overriding message - the eurozone must rally trust from G20 countries, to pluck itself out of financial troubles with their help. |
