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Jun 19

Greek election, debt crisis and G20 Summit: as it happened, June 17 – 18, 2012

David Cameron outlines five key threats to the global economy, including the "muddle-headed" thinking that over-indebted countries can spend their way out of trouble.

Cameron: Greek government delay could be dangerous Samaras wants to renegotiate bailout agreement Greek contraction accelerating, says Fitch Global (Chicago Options: ^RJSGTRUSD - news) markets falter, Spanish yields pass 7.2pc Eurozone came very close to meltdown, says ECB's Nowotny World leaders head to Mexico as G20 Summit gets under way Spanish banks need 150bn, according to reports

= Latest =

What does the eurozone need to do to stem contagion?

22.30 Right, that's the end of our marathon coverage of the Greek elections and G20 summit tonight. We'll be back tomorrow for day two of G20 in Mexico. Visit our G20 summit and financial crisis pages for more.

Goodnight.

22.77 Reforms to foster growth, such as changes to the labour market are "urgently" needed in order to put the eurozone back on a sustainable path, the IMF (Berlin: MXG1.BE - news) has said. In a report titled Fostering Growth in Europe Now , it said:

Fostering growth is always important; in the euro area it has become urgent.

If implemented correctly, reforms can boost growth by up to 4.5pc, the IMF added:

There is substantial empirical evidence that structural reforms can lift growth markedly in the medium to long term. Staff simulations show that large-scale labor, product market, and pension reforms, which cut the distance of euro area countries to growth-maximizing benchmarks in half, could boost output by 4 percent over the next five years. A pan-European approach is important: a quarter of this additional growth is expected to derive from positive cross-country and cross-reform spillovers. But one must be realistic that the near-term impact on growth, as opposed to the effect on overall confidence, will likely be modest.

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Greek election, debt crisis and G20 Summit: as it happened, June 17 - 18, 2012

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