G20 conference, no solution

From daily The Morning Star in Britain:

G20 leaders bicker while Greece burns

Tuesday 19 June 2012

by Our Foreign Desk

Leaders of the G20 group of states continued their annual jamboree today in the sun-drenched and luxurious beach resort of San Jose Del Cabo in tropical Mexico.

But their message for Greek people struggling with poverty, joblessness and constant cutbacks and Spaniards facing soaring unemployment and punishing interest rates set by international speculators remained one of dreary austerity.

Despite some cosmetic calls for growth-oriented policies, German Chancellor Angela Merkel continued to press her demand for swingeing economic rigour and cuts for all, while British PM David Cameron continued his call for eurozone states to take steps towards fiscal and banking union.

But they appeared more interested in apportioning blame for the world crisis of capitalism than [in] solving it.

Canadian Prime Minister Stephen Harper demanded that eurozone leaders make structural changes to solve the crisis.

Which clearly upset European Commission president Jose Manuel Barroso who snarled that he had not come to the G20 to be given lessons in democracy or in how to handle the economy.

“This crisis was not originated in Europe. This crisis originated in north America and much of our financial sector was contaminated by – how can I put it? – unorthodox practices, from some sectors of the financial market,” he sniped.

World Trade Organisation boss Pascal Lamy warned about contagion from the eurozone crisis, saying it was fuelling a trend towards protectionism, not only interfering with free trade but reversing it.

And his fears were fuelled by Russian President Vladimir Putin, who called for the rules to be altered to allow protectionism for countries facing a financial crisis.

“It is time to stop pretending and come to an honest agreement on the acceptable level of protectionist measures that governments can take to protect jobs in times of global crisis,” he said.

The IMF has taken the opportunity to announce a further £290 billion for its euro crisis bailout fund – on top of the £274bn announced in April.

China pledged £27bn to the fund. And the Brics group of emerging economies – Brazil, Russia, India, China and South Africa offered an additional £6.4bn each to the IMF – in exchange for voting reforms that would give them greater influence in the organisation.

Youth Unemployment in Italy at the Time of the ‘Great Recession’: here.