The Seventh G-20 summit concludes today with leaders of the top industrialised nations and emerging economies all set to agree on a coordinated Los Cabos Growth and Jobs Action Plan to prioritize boosting growth and job creation, hit hard by slowing global economy.
In its strongest signal in three years that it would act to strengthen the recovery, the G20 said in their draft communique that countries without heavy debts problems were ready to act together to spur growth, if the economy slows a lot more.
The draft communique urged Europe to take all necessary measures to safeguard the integrity and stability of the euro zone area.Among the commitments in a draft communique was a pledge to consider concrete steps towards a more integrated financial architecture in Europe that would include common banking supervision and firm guarantees to repay bank depositors.
At various sessions of the summit in Los Cabos, leaders from the G20 countries representing more than 80 percent of world output committing to additional money to the IMF to help countries struggling with debt.
India was the first country in the grouping to commit an additional 10 billion dollars to the IMF to promote adequate funds among creditors and prevent further economic crisis. At the summit , the BRICS grouping has pledged additional 73 billions to IMFto boost its reserves
Earlier addressing the plenary session of the summit, Prime Minister Dr Manmohan Singh the Prime Minister said the G 20 Summit needs to send a strong signal to the markets that the Eurozone countries will make every effort to protect the banking systems andglobal community will back a credible Eurozone effort and response.
Pointing out that less developed and developing countries were facing serious problems because ofthe global crisis, the Prime Minister said investment in infrastructure in developing countries will lay the foundation for rapid growth in the longer term besides providing an immediate stimulus for their economies.
On the slowdown in emerging economies including India, the Prime Minister said the government is taking steps to revive investor sentiment and determined to create an environment that would boost investor sentiment and promote an atmosphere conducive to enterprise and creativity
On the rising fiscal deficit in India, the Prime Minister said the fiscal deficit was allowed to expand after 2008 to impart a stimulus and the now the government is focusing on reversing the expansion. He said the government is determined to take some tough decisions including controlling subsidies to contain fiscal deficit.
