Take tough decisions, PM to G20

Prime Minister Manmohan Singh on Wednesday called upon G20 leaders to signal a strong and coordinated approach to put the global economy back on track. The leaders will try to address medium-term structural issues at a summit in Cannes, France, beginning tomorrow.

In a statement issued prior to his departure for the summit, Singh said difficult decisions to address the economic challenges in Europe and elsewhere needed to be taken swiftly.

Labelling the euro zone crisis the principal source of concern for the global economy, he said, “The twin summits of the European Union and the euro zone a few days ago have helped to restore a measure of confidence in the markets, but much more needs to be done.” (Click here for ENTREPRENEURSHIP: INDIA & THE G20)

Singh’s underscoring of urgency in handling the crisis comes a day after Greece decided to undertake a referendum on a package worked out last week. He added: “In Europe’s prosperity lies our own prosperity...Developing economies such as India need a conducive global economic environment to address the vast challenges they face.”

The G20, said the PM, needed to ensure developing countries had access to the requisite funds through multilateral development banks and to investible surpluses to meet their infrastructure and other priority needs.

“In an increasingly interdependent world, we have to be wary of contagion effects and the import of inflationary pressures in our economy.”

He emphasised the need for effective and representative global governance mechanisms. The PM will be in the French city for three days. He will also have discussions with the heads of governments of France, Britain and Australia, beside European leaders Herman Van Rompuy and Jose Manuel Barroso.