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Officials in Europe are set to meet on October 23rd to finalise their plans to deal with the issue, which has severely weakened the euro recently.
Following the G20 meeting, Bloomberg cited Canadian finance minister Jim Flaherty, who stated: "The risk of a recession would be increased dramatically were the Europeans to fail to accomplish goals that they've set for themselves."
German finance minister Wolfgang Schaeuble said yesterday (October 16th) that in order to solve the debt crisis, it will be necessary to persuade banks to allow larger write-downs, reports Reuters.
Improved optimism among FX traders that a solution will be found boosted the euro last week, leading it to make a 3.8 per cent advance.
This was the largest weekly advance seen since March 2009, although trading at 11:21 local time in Tokyo today saw the 17-nation currency fall by 0.2 per cent.
Posted by Chris Weaver
