By Jan Strupczewski
BRUSSELS Oct 10 Leaders from the G20 countries
are so concerned that Europe's crisis will spillover to the rest
of the world it is likely to be the focus of their summit in
early November, top European Union officials said in a letter on
European Commission President Jose Manuel Barroso and
European Council President Herman Van Rompuy said in a letter to
other EU leaders, however, that the Nov. 3-4 summit in Cannes,
France, should also discuss risks to global growth from the
United States and emerging economies.
"Europe will be in the focus of the Cannes summit," the
letter from Barroso and Van Rompuy said.
"Our G20 partners' perception is that if Europe does not
solve its sovereign debt crisis there will be dangerous
spillovers on the global economy. We need to show them that the
European Union is determined to do whatever necessary to
overcome the current difficulties," the two EU leaders said.
The G20 comprises the worlds leading developed and
The letter said that many of the economic imbalances that
existed before the euro zone debt crisis were still there. They
have often complained about China's undervalued yuan currency
and a lack of savings in the United States.
"We therefore need to ensure a balanced discussion of the
various risks to the global economy, including those coming from
the U.S. and from emerging market economies. All countries need
to make a contribution," the letter said.
It reiterated a call from EU finance ministers for a road
map to expand the basket of currencies that underpin the
International Monetary Fund's artificial currency called the
Special Drawing Right (SDR).
Some policymakers hope the SDR could become the world's new
reserve unit, reducing international reliance on the U.S.
If the SDR currency basket were to include the Chinese yuan,
policymakers hope Beijing could be more interested in allowing
the now tightly controlled currency to appreciate, which, in
turn, would help rebalance global trade and savings patterns.
The EU would also like to discuss at the G20 summit the
possibility of giving the IMF more and better tools to deal with
countries under systemic stress and whether the fund has enough
money for such interventions.