As I'm sure most of you know, the G20 summit began recently. Its main focus will be on the European economy. Some of the issues at hand are what to do with Greece and Italy and how to come up with a plan to stabilize the European economy. The EU is considering trying to get Greece to leave the eurozone, especially since China refuses to lend money to the EU until Greece's economic situation is repaired. With Greece's economic problems, it is devaluing the euro for all of the countries that use it, tearing down the economies of other states, like Italy.
While some would argue that China is being selfish by not lending money to European banks, it is definitely in its best interest. Although Greece needs money to improve and China refuses to give money until it does, there's no point in pouring money into a broken system. It would be much easier for banks to get loans from richer countries if the European countries had a plan as far as how to solve the economic crisis, which is exactly why the G20 summit is focusing on this problem.
In hammering out a solution, one suggestion is to increase the lending power of the International Monetary Fund. The IMF would become a more powerful force in combatting the fall of the eurozone. Additionally, special precautions would be taken to avoid what happened in Greece from happening in Italy.
The summit will also discuss the possibility of the Greek prime minister losing the confidence vote, which could further delay economic recovery due to instability in the government and a delay in passing a bailout package in parliament.
What do you think? Do their solutions seem viable? How important do you think summits like this are to international politics? And could this threaten the sovereignty of states? Do you think the Greek prime minister should be replaced?
