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G-20 rejects extra help for debt-strapped Europe

November 5, 2011 • World News


Indonesian President Susilo Bambang Yudhoyono, left, talks with South Korean President Lee Myung-bak during a working session at the G20 Summit in Cannes, France, Friday, Nov. 4, 2011. Leaders from within the troubled Europe other G20 nations are working Friday in Cannes, on ways the International Monetary Fund could do more to calm Europe’s debt crisis. (AP Photo/Charles Dharapak)(AP Photo/Charles Dharapak)

CANNES, France (AP) — The G-20 summit ended in disarray Friday without additional outside money to ease Europe’s debt crisis and new jitters about Italy clouding a plan to prevent Greece from defaulting.

In Athens, meanwhile, Greece’s prime minister survived a confidence vote in parliament, calming a revolt in his Socialist party with a pledge to seek an interim government that would secure a vital new European debt deal.

In the end, only vague offers to increase the firepower of the International Monetary Fund — at some later date — were all the eurozone leaders were able to take home after two days of tumultuous talks.

With their own finances already stretched from bailing out Greece, Ireland and Portugal — and the United States and other allies wrestling with their own problems — eurozone countries had been looking to the IMF to help line up more financing to prevent the debt crisis from spreading to larger economies like Italy and Spain.

Italy’s fate in particular is crucial to the eurozone, because its economy — the third-largest in the currency union — would be too expensive to bail out. The implications for the world economy are stark: The debt crisis that has Login to read more

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