The leaders of the Group of 20 major economies, at their June 18-19 summit in Los Gabos, Mexico, adopted a declaration emphasizing the need to resolve the European financial crisis, among other things. The declaration in part said that "Euro Area members of the G-20 will take all necessary policy measures to safeguard the integrity and stability of the area."
The European Union and the eurozone countries have not yet come up with truly effective measures to solve the crisis in Europe. It is important for the eurozone countries to work out a concrete road map as soon as possible to end the crisis. Their demonstrating a strong determination and quick joint action are all the more important, because the crisis in Europe carries the danger of crippling the global economy.
After Greece's sovereign debt crisis surfaced in the fall of 2009, a similar crisis spread to Ireland, Portugal and Italy. The crisis flared up again in Greece and a similar crisis has loomed big in Spain. Although political forces supporting the existing austerity program won in the recent Greek parliamentary elections, markets have strong apprehensions about the debt crises in Spain and Italy.