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The European Union at the G20 Summit in Los Cabos (Mexico): "Rebalancing global growth together"

European Commission - IP/12/598   15/06/2012

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European Commission

Press release

Brussels, 15 June 2012

The European Union at the G20 Summit in Los Cabos (Mexico): "Rebalancing global growth together"

Brussels, 15 June 2012 – The discussion on the global economy and on a framework for growth will be high on the agenda of the G20 Summit, which will be held on 18 and 19 June in Los Cabos, Mexico.

Presidents Barroso and Van Rompuy underlined ahead of the Summit: "In this context the situation in the euro area will be an important issue for discussion in this year's G20 Summit. We will bring to bear the EU's determined action to deliver a comprehensive response to the sovereign debt crisis: addressing the challenges of vulnerable countries; supporting growth through structural reform and differentiated and growth-friendly fiscal consolidation within the European Semester; strengthening euro area financial firewalls; funding and recapitalising banks; and strengthening economic governance in the euro area. We will reaffirm to our G20 partners our commitment to safeguard financial stability in the Euro Area and its integrity. We will also make clear that we want Greece to remain in the euro area while respecting its commitments. Finally, we will inform our partners of the work we are undertaking to further strengthen and deepen our economic union to match our monetary union."

Both Presidents will also call on their G20 partners to recognise their own responsibilities in giving a strong impulse for rebalancing the global economy. The EU is convinced that the Los Cabos Action Plan for Growth, that is to be adopted by the G20 leaders, should be a balanced combination of fiscal consolidation and structural reforms, including balanced commitments by all G20 members, including the US, Japan, and China, and that it will serve as a concrete framework for all G20 countries to renew their commitments to boost global growth.

A further important item on the G20 Summit agenda will be the strengthening of the international financial architecture and the financial system, financial regulatory reform and promoting financial inclusion. The two Presidents will recall that the EU is well on track to have all financial reforms fully in place by 2013 and that it expects its partners to implement these G20 commitments too. Financial market reform will have to remain high on the agenda of the G20, fulfilling the commitments taken by G20 Leaders since the Washington summit in 2008.

The agreement already reached by G20 Finance Ministers in Washington in April to increase IMF resources by USD 430 billion is welcome. Presidents Barroso and Van Rompuy will stress that the full implementation of the reforms agreed in 2010 on IMF quota and governance is a critical element for boosting the legitimacy, credibility and effectiveness of the Fund. The EU is on track for the timely implementation of the 2010 IMF quota and governance reforms, and all EU Member States expect to complete their ratification by the agreed deadline. The EU will encourage all other IMF members to do likewise. IMF members should also now stand ready for constructive discussions on the review of the IMF quota formula and on the next review of quotas, taking into account the need to improve IMF accountability, oversight and effectiveness.

A third session will focus on the development, food security and inclusive green growth. For the EU, it is very important to keep development and food security on the G20 agenda and to emphasise that we all, developed and less developed countries alike, should move towards a greener and more inclusive economy. Presidents Barroso and Van Rompuy will call on the G20 to give a political impulse to a successful Rio+20 conference, which takes place just days after the G20 Summit.

G20 leaders will also discuss trade, job creation and growth. The EU considers that trade should play an important role at the current juncture as a source of growth and jobs. President Barroso and President Van Rompuy will call on their G20 partners to give a strong impulse for trade facilitation in order to secure a successful outcome of one part of the Doha development agenda which is particularly helpful for least developed countries. Given the worrisome rise in protectionism, they will urge the G20 to enhance the fight against protectionism and to further strengthen the multilateral trading system.

Last but not least, both Presidents consider employment, in particular for youth, as a key concern for the EU and for the G20 countries, and welcome the continued G20 focus on employment matters.

Background

The first G20 Summit of heads of state and government was held in Washington in November 2008. Until 2010 G20 leaders met twice a year, since last year meetings are organised annually. The 2013 Summit will be hosted by Russia in Saint Petersburg. The European Union is a full member of the G20, together with Argentina, Australia, Brazil, Canada, China, France, Germany, Italy, India, Indonesia, Japan, Mexico, the Republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom and the United States. Traditionally, guest countries may attend the Summits. The Mexican Presidency invited the following five official G20 guest countries: Spain (as permanent guest country), Benin (chair country of the African Union), Cambodia (chair country of the Association of Southeast Asian Nations), Chile (chair country of the Latin American and Caribbean States community), and Colombia. In addition, Ethiopia is also invited as the chair of the New Partnership for Africa's Development (NEPAD). As in the past, several side events will take place, like the Business (B20) and Labour (L20) Summits.

For more information

MEMO/12/444 The European Union at the G20 in Los Cabos, Mexico: Questions and Answers

Read the Joint G20 letter of Presidents Barroso and Van Rompuy:

http://ec.europa.eu/commission_2010-2014/president/news/documents/2012/05/letter_hvr-jdb_g-20_18-19june.doc

President Barroso's G20 website:

http://ec.europa.eu/commission_2010-2014/president/g20/index_en.htm

President Van Rompuy's G20 website:

http://www.european-council.europa.eu/the-president/summits-with-third-countries?lang=en

Official G20 website of the Mexican government:

http://www.g20.org/index.php/en

Twitter: http://www.twitter.com/euHvr and http://www.twitter.com/EC_live

Video material: http://tvnewsroom.consilium.europa.eu/

and http://ec.europa.eu/avservices/ebs/schedule.cfm

Contacts :

Pia Ahrenkilde Hansen (+32 2 295 30 70)

Jens Mester (+32 2 296 39 73)


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