Los Cabos, June 18
World leaders pressed Europe on Monday to do whatever it takes to combat the euro zone’s debt crisis after a victory for pro-bailout parties in a Greek vote reduced the chances of a euro breakup but failed to calm financial markets.

The world’s major industrialised and developing economies are set to urge the euro zone to break the vicious link between its struggling banks and strained state finances, according to a draft communiqué prepared for the G20 summit and seen by Reuters.

It said Europe would take “all necessary policy measures” to resolve its crisis and said Group of 20 leaders looked forward to the euro zone working closely with a new Greek government to keep it on a reform path and in the currency bloc.

Protected by Mexican navy vessels and troops on the beaches and highways, leaders from the Group of 20 countries representing more than 80 percent of world output began a two-day meeting in this Pacific resort to prioritize growth and job creation against the backdrop of a weakening global economy.

Escalating violence in Syria and the near-collapse of a United Nations-brokered peace plan will also be in focus when US President Barack Obama meets with Russian President Vladimir Putin on the sidelines of the summit on Monday. The two super powers are clashing over arming Syria and UN sanctions.

But Europe’s progress toward lasting solutions for its debt crisis will be the focal point when G20 leaders hold their opening session on the global economy in the afternoon.

Obama spoke with European leaders after the Greek vote and requested a meeting with them on Monday evening. — Reuters