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'More needed' to restore euro confidence: PM

The sovereign debt crisis in the eurozone "has emerged as the principal source of concern for the global economy," Manmohan Singh said ahead of his departure for a summit of G20 countries in Cannes, France. Debt crisis hits world markets; Sensex opens weak

business Updated: Nov 02, 2011 16:03 IST

India's Prime Minister Manmohan Singh said on Wednesday "much more needs to be done" to restore investor confidence in the eurozone and urged leaders to take difficult decisions "swiftly".

The sovereign debt crisis in the eurozone "has emerged as the principal source of concern for the global economy," he said ahead of his departure for a summit of G20 countries in Cannes, France.

"The twin summits of the European Union and eurozone a few days ago have helped to restore a measure of confidence in the markets, but much more needs to be done," he said.

"It is imperative that the difficult decisions needed to address the economic challenges in Europe and elsewhere are taken swiftly."

Singh has expected that the Summit of world's 20 leading economies (G20) to signal a "strong and coordinated approach" to put the global economy back on track, while addressing medium term structural issues.

Singh has also underscored the need for swiftly taking the difficult decisions to address the economic challenges in Europe and elsewhere against the backdrop of the sovereign debt crisis in Eurozone.

"It is important for the Cannes Summit to signal a strong and coordinated approach to put the global economy back on track, while addressing medium term structural issues," he said in a departure statement before leaving for the two-day Cannes Summit in French Riviera starting on Thursday.

The Prime Minister said much more needs to be done to combat the debt crisis despite measure of confidence being restored in the market after the twin summits of the European Union and Eurozone a few days ago.

Noting that the Eurozone is a historic project, he said, "India would like the Eurozone to prosper, because in Europe’s prosperity lies our own prosperity".

Developing economies such as India need a conducive global economic environment to address the vast challenges they face, he said.

"In an increasingly interdependent world, we have to be wary of contagion effects and the import of inflationary pressures in our economy. We need to ensure that developing countries have access to requisite funds through multilateral development banks and to investible surpluses to meet their infrastructure and other priority needs," Singh said.

The issue of global governance will also come up for discussion during the G20 meet.

"This is an issue of importance to India, and we will work with others to develop effective and representative global governance mechanisms and carry forward the process of reform of the international monetary and financial system," he said.