The G-20 ended with growing global pressure on German chancellor Angela Merkel to work toward a long-term solution for Europe's sinking economies.
The G-20 in Los Cabos, Mexico, ended mainly as a platform for urging European leaders to take decisive action on a financial crisis that is daily spiraling downward, though Greece today announced it had finalized a government coalition.
But no headlines came out of Mexico to temper the market forces now chewing away at Spain and Italy, having already abandoned Greece – and no decisions to spark more of that intangible elixir: confidence.
If there is a European G-20 takeaway, it may be the pressure exerted by global leaders, including US President Barack Obama, on Angela Merkel, chancellor of Europe’s German powerhouse, ahead of a crucial June 28 EU summit, whose purpose increasingly appears to provide a long-term solution.
That summit, like so many before, is billed as crucial. This time it may be: It is a likely showdown over long-term questions, like “mutualization” of debt, banking unions, and federalism that were long avoided during the years of abundance prior to the financial crisis.
In a way, the underlying issue June 28 is whether Europe will nudge closer to a “United States of Europe” federal model.