• 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'.

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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'

Among the 17-country group that uses the euro, there still appears to be little concrete agreement over how best to solve the problems of too much government debt holding back the region's recovery.

A narrow victory for the New Democracy party in elections over the weekend in Greece means that the country is more likely to stick to the harsh austerity terms of its 240bn euro ($300bn) bailout package and avoid a chaotic exit from the euro in the very near future - an event many fear would destabilize Europe and send shockwaves through the world.

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'

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'.

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.

Video: EC President blames the U.S. and Cameron slams the French tax plan

Video: Cameron calls for EU recovery plan at G20

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Just listened to Obama on CNN in Mexico , when asked where the money for the Spanish banks is coming from he stated the specifics and mechanism has yet to be finalised !. In other words , the money is not there !. Not the ESFS not the ECB not the Fed !. Can anyone out there tell us where is the money coming from ?. Or has the TItanic hit the Iceburg !.

To those who keep worrying about money, get real. The Euro Crisis is not about money, it is about DEBT. In DEBT terms, the Euro is nothing more than a piece of paper, an IOU, a promissary note - meaning a

To those who keep worrying about money, get real. The Euro Crisis is not about money, it is about DEBT. In DEBT terms, the Euro is nothing more than a piece of paper, an IOU, a promissary note - meaning a

Its like group sex, there is always one person in the group that farts, and puts everyone off...

oooooops.

Hurrah, those clever politicians of the EU have saved the day again with a £290bn firewall....trouble is what about tomorrow.

Nothing but nothing has come out of this, they seem to have forgotten they are sitting on a ticking bomb.

All this time wasted on rescuing the euro for what ? Should ever have been introduced in the first place !!

Get rid of all your euros before the end of august !!

the euro project is reminiscent of the titanic, and when she sinks you can be guaranteed the rich and priveleged will be first on the lifeboats...

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