Belfast Telegraph

Cameron calls for G20 leadership to rally over global economy woes

By Andrew Woodcock

The UK has joined forces with five other G20 countries to call for decisive and coordinated action from the world's leading nations to help the global economy recover from recession.

Prime Minister David Cameron put his name to a letter to current G20 president France - also signed by the leaders of Australia, Canada, Indonesia, Mexico and South Korea.

It warned that the path out of recession will be "difficult" and arguing that the world's biggest economies must agree at the Cannes Summit in November to work together to increase global demand without creating unsustainable imbalances.

The six signatories, who do not include the US or any eurozone state, urged swift action to resolve the debt crisis in the single currency area and for measures from Washington to put America's public finances on a sustainable path.

South Africa was involved in discussions about the letter and is understood to share many of the concerns, but decided at a late stage it was not ready to sign up.

"For many advanced economies the path out of the deep and prolonged recession will be difficult," warned the letter, addressed to French President Nicolas Sarkozy.

"This will impact on growth in emerging markets, and there is more limited room for manoeuvre than in 2009."

Mr Sarkozy said yesterday that the Cannes Summit should be used to help the world find a path back to economic growth.

Barriers to progress on restoring growth are now political as much as economic, said the letter.