Sunday, 16 October 2011

Advanced Australia to aid Euro recovery aap

Advanced Australia to aid Euro recovery

aap
On Sunday 16 October 2011, 8:04 EST
As a leading world economy, Australia will take a front seat in forging recovery plans for the European financial crisis.
It is a position that does not carry substantial cost, Treasurer Wayne Swan insists.
At the G20 finance ministers meeting in Paris on Saturday there was consensus among delegates for "an ambitious reform of the European economic governance".
The approach has the full support of Mr Swan, who agreed that Australia is among the "advanced economies" mentioned in a draft communique released at the close of Saturday's meeting.
"Advanced economies, taking into account different national circumstances, will adopt policies to build confidence and support growth, and implement clear, credible and specific measures to achieve fiscal consolidation," the communique read.
"Those with large current account surpluses will also implement policies to shift to growth based more on domestic demand. Those with large current account deficits will implement policies to increase national savings."
Mr Swan, who went into Saturday's closed-door meeting saying the crisis had gone on "too long" and absolutely insistent that a recovery plan be formulated, said he had much to contribute during Saturday's forum.
"What we have said and what many countries have said today is that they are very supportive of the IMF having the resources that it needs to meet the challenges of the global economy," Mr Swan told AAP.
"Australia would always contribute what its share would be, of the IMF. So we are not talking about doing something that would be over and above our normal share of any particular set of resources the IMF was seeking to marshall.
"But generally the resources that we provide to the IMF are ones which give us a financial return. They are not a substantial impact on our bottom line."
Mr Swan said it's important to combat the crisis because Australia is not immune from the fallout.
"Events in Europe have caused extreme volatility on markets, they've had a profound impact on stock markets including in Australia and are leading to a slowing in global growth," he said.
"Australia's view is very clear - we stand ready, as do many other developed economies around the table today, to work together to ensure that the IMF has the resources that it needs, should they be required."
Delegates for the US - a major contributor to the IMF - were among nations reluctant to see the body boost its commitments, namely the propping-up of European financial institutions.
During a post-meeting press conference, French Finance Minister Francois Baroin admitted the US was not alone in voicing its opposition to the scheme.
Nevertheless, Mr Baroin said of Saturday's meeting: "Many results have been achieved and a great deal of progress has been made."
"This report has been agreed and is going to be implemented by the end of 2012."
Ahead of the G20 Leaders Meeting in France in November the report is expected to be confirmed at the European Council and Eurozone summit on October 23.

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