Europe’s debt crisis dominated discussions at the G7 meeting of finance ministers in the French city of Marseilles on Friday.
Commentators warned that although there had been agreement on the need for a joint response to the renewed global economic slowdown, there was little commitment to concrete action.
Analysts said officials from the G7 nations (the US, Canada, Japan, the UK, France, Italy and Germany) are still divided over growth strategies.
French Finance Minister Francois Baroin told reporters: “There are clear signs that global growth is slowing and we are ready to provide an international response. We will take all necessary action to keep stability within the banking and financial system.”
G7 members are split over the impact of of austerity measures. Their conflicting views
were not helped by the resignation of Juergen Stark, a governing board member of the European Central Bank.
Stark has lobbied for stricter measures for crisis-hit countries like Greece and Portugal.
European and US stock markets tumbled on Friday amid fresh rumours that Athens was set announce a partial default on it’s debt over the weekend.