• But President of European Commission says crisis originated in U.S.
  • David Cameron among leaders pressuring Germany to take decisive action towards fiscal union
  • IMF to pump further $456bn (290bn) into euro crisis war chest

By Chris Parsons

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World leaders at the G20 summit have focused their attention on Europe, as efforts continue to resolve the financial crisis branded 'the single biggest risk for the world economy'.

David Cameron was among those pushing for 'core' eurozone states like Germany to take decisive steps towards the fiscal and banking union which will help the euro function properly.

The Prime Minister's calls came after the financial crisis sweeping Europe was described as 'the single biggest risk for the world economy'.

David Cameron was among the world leaders at the G20 summit pushing for 'core' Euro states like Germany to find fiscal and banking union to help stabilise the eurozone

David Cameron was among the world leaders at the G20 summit pushing for 'core' Euro states like Germany to find fiscal and banking union to help stabilise the eurozone

However, the President of the European Commission attacked critics of the of the eurozone's crisis management, declaring that the crisis originated in the U.S.

After facing fresh calls for Europe to find a resolution, Jose Manuel Barroso claimed 'the crisis originated in North America' with the collapse of real-estate-linked financial products.

At the G20 summit in Mexico today, David Cameron and other world leaders called on political parties in Greece to get on and form a coalition government, following Sunday’s elections, warning any delay could be ‘very dangerous’.

Spain, meanwhile, is likely to pay record prices to borrow at debt auctions today and on Thursday, after the Greek election failed to ease concerns about the future of the euro zone

The yield on Spanish 10-year bonds hit a fresh high of above seven per cent yesterday, as initial relief over the victory of pro-bailout parties in Greece gave way to ongoing fears of deeper problems facing the bloc.

Seven percent is considered too pricey for a country to afford over the long term. Such levels have previously led to bailouts in Greece, Ireland and Portugal.

United front: G20 leaders, including Barack Obama on the front row and David Cameron and Angerla Merkel in the central row, have had their discussions dominated by the euro crisis

United front: G20 leaders, including Barack Obama on the front row and David Cameron and Angerla Merkel in the central row, have had their discussions dominated by the euro crisis

Jose Angel Gurria, secretary general of the Organisation for Economic Co-operation Development, branded the euro crisis 'the single biggest risk to the world economy'

Jose Angel Gurria, secretary general of the Organisation for Economic Co-operation Development, branded the euro crisis 'the single biggest risk to the world economy'

Spain, the euro zone's fourth-largest economy and more than twice the size of bailed-out euro zone partners Greece, Portugal and Ireland combined, is at the centre of market jitters as it struggles with a deep recession and banking sector restructure.

Despite the financial instability, European Commission President Jose Manuel Barroso defended the eurozone, insisting 'the challenges are not only European, they are global'.

European Commission President Jose Manuel Barroso defended the eurozone, insisting 'the challenges are not only European, they are global'

European Commission President Jose Manuel Barroso defended the eurozone, insisting 'the challenges are not only European, they are global'

He also took what was seen as a subtle dig at China and other non-democratic countries at the summit in Mexico.

'Not all the members of the G20 are democracies but we are democracies and we take decisions democratically.

'Sometimes this means taking more time,' he said.

'Frankly we are not coming here to receive lessons in terms of democracy or in terms of how to handle the economy, because the European Union has a model that we may be very proud of.'

He was speaking as the IMF announced a further $456bn (290bn) for its euro crisis war chest - on top of the $430bn (274bn) announced in April.

Tackling the euro crisis has so far dominated the G20's talks in Los Cabos.

Despite the victory of a pro-euro party in Greece's elections at the weekend, there has not yet been an announcement on the formation of a government in Athens.

Jose Angel Gurria, the head of the Organisation for Economic Co-operation and Development (OECD), had earlier said the crisis was 'the single biggest risk for the world economy'.

Prime Minister David Cameron urged Greece's centre-right New Democracy party to move 'decisively and swiftly' to form a new administration, warning that 'delay could be deadly'.

But he acknowledged that the crisis in the eurozone could rumble on 'for some time' and made clear that he is looking elsewhere in the world for trading partners to replace lost demand from the UK's traditional export markets in Europe.

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Oi barroso!, stop spouting off the e.u is a democracy because it isn't!!.

When will this lot learn? Like anything, stability starts at the bottom and that includes fiscal stability. For months while in opposition Osborne was banging on about - Mark, Stevenage, ==== Most of my posting gets left off and is clearly incomplete and yet i still get 5 green arrows. Amazing!

Isn't it about time that the major religions in Europe helped "their people" with donations or interest free loans to governments. For centuries they have morally and financially rap3d Europe, if they had one drop of compassion, or remorse, they would be helping out, without the Governments having to make that decision for them. Europe's religious leaders have been keeping a low profile lately, because they know that this WILL happen. The writing IS on the wall.

ABSOLUTE RUBBISH, IF WE CAN GIVE BILLIONS OF TAX CUTS TO THE WEALTHY, WHO DONT NEED IT

There is a much bigger plan afoot here. Nobody pumps so called Billions into something that is an utter failure (I say so called, because this amount of money does not even exist). Im betting the end game is to bring us all closer to their NEW WORLD ORDER

Just how many summits does it take before The EU grandees wake up and take some action? Talk about ' Fiddle while Rome burns'

Pretty rich for an arch socialist to point the finger at the

But President of European Commission says crisis originated in U.S.........Why is the EU blaming others for their mistakes? Actually we should be blaming the EU for the crisis, because we have unelected MEP's of whom have the "I don't care attitude" in whatever they do. They know that they are safe in their jobs.

I'm afraid Barroso is in total denial about the financial meldown in Europe and has lost whatever credibility he had.

Barrosso's comments are wrong on so many levels they make me despair. Europe does need lessons in democracy, it is fast becoming the most undemocratic continent in the world. When did Europe ask if we wanted the Euro? What happenned to Ireland when they first voted no? They were blackmailed until they said yes. Secondly, who the hell cares who started the problem 5 years ago. Its pretty academic now. He is so out of his depth its trully embarrassing.The sad thing is none of them have a scooby as to how to get us out of the mess their myopic vision for the future created. Hence all posturing and bluster

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