France - G20 summit takes place amid Greece issue

CANNES, France: On the eve of the G20 summit in Cannes, France and Germany had to do damage control on its domestic front.

This is because of Greece's decision to call for a referendum on the very deal reached recently to help cut its debt and avoid a default.

EU leaders have given Greece an ultimatum - either go along with the new debt plan, or face being booted out from the Union.

This comes against a backdrop of economic uncertainty and lingering questions about European sovereign debt affecting other member states.

The G20 summit is taking place in the French Riviera city of Cannes amid tight security.

The city centre is in a virtual lock down, with retail shops mostly closed for the week.

World leaders of the top industrialised nations, alongside emerging economies, have two days to tackle a long list of issues concerning the global economy.

After the official welcome by French President Nicholas Sarkozy, it is down to work for the G20 officials.

This is the second time Prime Minister Lee Hsien Loong is representing Singapore at the G20 meetings. The first was in Seoul.

On the sidelines of this year's G20 meeting, Singapore will also have bilateral meetings with some of the G20 member states.

Singapore will be present at all official ministerial meetings and play an active role in the discussions on the global economic situation, an action plan to boost growth, and reform in the monetary system.

There is also a working session devoted to development, trade and global governance.

These are significant issues because G20 is home to two-thirds of the world's population, representing some 90 per cent of the global gross national product.

Eighty per cent of global trade can also be traced to these countries. 

Singapore's voice could potentially shape G20 policies to build a more stable and resilient global system.

As for EU stability, the countries are committing to a 1 trillion euro fund to help battle any future crisis. The money will also support weaker eurozone economies.

More recently, Italy and Spain were thrust into the spotlight with their high levels of debt.

But raising the money for the European Financial Stability Facility remains a thorny issue, especially with China, who is unconvinced that it should help pay for it.

In the weeks leading to this summit, much of the attention was focused on Greece and helping it avoid a debt default. 

G20 leaders have welcomed the agreement reached by the EU to help contain the debt crisis. But now they are likely to seek more clarity and detail on how the debt plan will be implemented going forward.

- CNA/ms


Business & Investment Opportunities

YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.