News / Europe

G20 Ministers Meet to Resolve European Debt Crisis

G20 finance ministers are gathered for a group picture  at the French Finance Ministry  in Paris,  Oct. 15, 2011.
G20 finance ministers are gathered for a group picture at the French Finance Ministry in Paris, Oct. 15, 2011.
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Finance ministers from the world's 20 biggest economies are meeting in Paris to try to resolve the European debt crisis that is threatening to push world economies into another recession.

The ministers are expected Saturday to consider options some leaders say could stabilize global financial markets and ease the debt of financially troubled Greece.

A major breakthrough is not considered likely at the meeting, which is seen as a steppingstone to upcoming summits.

On Friday, U.S. President Barack Obama called German Chancellor Angela Merkel to discuss the latest developments in the eurozone crisis.

The White House said President Obama and Chancellor Merkel also talked about preparations for the G20 summit next month in France.

U.S. officials have accused European Union leaders of not acting fast enough to avert the crisis that they say could send the global economy into a new recession.  Merkel rejected the criticism Friday, saying those outside the eurozone have no right to urge the grouping into action.

She also defended her gradual approach to the debt crisis, saying a solution to the problem that had built up over decades cannot be found overnight.

European leaders are pressing the continent's banks to sharply increase their cash reserves to cover possible losses on the debt they hold from Greece and other countries.  U.S. investment bank Goldman Sachs suggested the European banks may need to add more than $400 billion to reserve accounts.

Still others think the lending capacity of the International Monetary Fund should be increased.  But U.S. Treasury Secretary Timothy Geithner rejected the idea, saying Europe has enough of its own money to solve the debt crisis.

Some information for this report was provided by AP, AFP and Reuters.

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