G7, G20 input on euro crisis ‘critical’: EU

G7, G20 input on euro crisis ‘critical’: EU

Brussels: The EU said Friday that the input of G7 and G20 partners will be of ‘critical importance’ in efforts to resolve the spiralling eurozone debt crisis.

“The current turmoil is not just affecting Europe but has a global dimension and global repercussions and ramifications," EU Economic Affairs Commissioner Olli Rehn said.

“That’s why the solution has to be global as well. And that’s why international policy coordination through the G7 and G20 is of critical importance."

The Group of Seven brings Canada, Japan and the United States in alongside non-euro Britain and the the eurozone’s top three economies - Germany, France and Italy.

After the United States raised its debt ceiling again this week, fears rose of a renewed global downturn. The Group of 20 also includes major economies such as Brazil, China, India and Russia.

Both bodies were brought in by the eurozone during the final stages of planning for earlier bailouts.

Among the reasons Rehn identified for Italy and Spain facing sharply rising debt risk premiums on bond markets was the general picture of concern outside Europe.

“Investor sentiment has been negatively affected by the impact of the debt ceiling negotiations in the United States and recent data suggesting a soft patch in the global economy," he added.