The friction amongst members of the G20 has become all too obvious and there is now an ever growing concern that the problems besetting the eurozone are ushering in a global recession. David Cameron had stern words for the region which amounted to a warning that their state of debt crisis is leading the rest of the world into a new recession.
After failed talks in Cannes, financial markets dropped significantly and the summit ended in a state of disorder. It now appears that Italy has been literally forced to comply with the demands of the IMF that their austerity programme be closely monitored.
As well, the UK had hoped that the German government would somehow yield to the European Central Bank in order to be the lender of choice. Since Germany is unrelenting on this point, matters continue to grow gloomier.
Now it seems that the Greeks have won a referendum vote and George Papandreou led with a 153 to 145 vote that would lead him into stepping down from his current position in order to help form a coalition government within the very near future.
As the deadlock of the G20 became evident, David Cameron had stern words about the debt crisis in the eurozone’s impact on the UK. He is reported as saying that he isn’t prepared to pretend that these problems will be diminishing any time soon. As well, he is adamant in his belief that the rest of the globe is not in a position to wait for the EU to work things out on their own.
Cameron even went as far as describing current events as only “a stage of the global crisis.” This is a hint of the advent of a new global recession economists and political leaders have been warning about in recent months. At this point, the UK will begin focusing efforts on influencing the EU to heighten their efforts in order to stop the contagion that appears to have taken hold of the world markets.
