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David Cameron calls for G20 leadership in helping global economy recover

PM co-signs letter to Nicolas Sarkozy saying co-ordinated and swift action from G20 needed to foster growth and confidence

Britain has joined five other G20 members in calling for decisive and co-ordinated action from the world’s leading countries to support growth” and provide “confidence and credibility” to help the global economy recover from recession.

David Cameron has co-signed a letter to Nicolas Sarkozy, France’s president and current leader of the G20, arguing that the world’s biggest economies must use the Cannes summit in November to agree to work together to increase global demand without creating unsustainable imbalances.

“Only when we work together can we restore strong growth and the confidence on which it depends,” said the letter, also signed by the leaders of Australia, Canada, Indonesia, Mexico and South Korea.

Speaking from New York, Cameron told Channel 4 News: “What needs to happen is every country has got to face up to its own problems and difficulties and deal with them, whether that is debts in the eurozone, whether it is problems in banks, whether it’s dealing with [their] deficits.”

He added: “Every country in the world has got to do that in a co-ordinated way so we can get growth moving.”

The letter echoes Sarkozy’s words on Wednesday when he said Novembers; G20 summit should be used to help the world find a path back to economic growth.

Cannes will provide an opportunity for G20 members – who together represent 85% of the world economy – to “commit to each other to take the actions we know are necessary”, the letter says.

It calls for swift action to resolve the eurozone debt crisis as well as for measures from Washington to put America’s public finances on a sustainable path.

“Three years after our first leaders’ meeting, reverberations of the global financial crisis are still being felt by citizens and governments around the world,” says the letter. “For many advanced economies the path out of the deep and prolonged recession will be difficult. This will impact on growth in emerging markets, and there is more limited room for manoeuvre than in 2009.

“We fully support your call yesterday that the priority of the G20 must be to help the world find the path to growth. We will give our full backing to your presidency in achieving this at the Cannes summit in November.

“We need decisive action to support growth, confidence, and credibility. We have not yet mastered the challenges of the crisis.”

It went on: “Global imbalances are rising again. External risks to the stability of our banks and our economies are reaching pre-crisis levels. And volatile and high energy prices are hurting our citizens and acting as a drain on world growth. At the same time, the confidence of citizens, businesses, and markets has been damaged due to the lack of visible political will: this in itself is holding back the recovery.”

It added: “The barriers to action are now political as much as economic. We must send a clear signal that we are ready to take the actions necessary to maintain growth and stability for all for the future.”

G20 finance ministers are meeting this weekend in Washington alongside the IMF, They will then meet again in mid-October. © 2011 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds