The European public debt crisis was the main subject of a discussion by G7 finance ministers and central bank governors on the sideline of the ongoing annual meeting of the International Monetary Fund (IMF) and World Bank (WB) in Tokyo.

G7 discussion (Photo: Internet)

Participants discussed measures to tackle financial and banking problems in the Eurozone, including the European Stability Mechanism (ESM) fund and a plan for the European Central Bank to buy its member’s bonds. Japan called for closer G7 cooperation until the G20 Finance Ministers Meeting in Mexico next month. Participants also discussed the US’ financial problems. The US is facing automatic tax increases and budget cuts early next year which could deepen the current recession.