By Marcus Leach

The Prime Minister has signed a joint letter responding to President Sarkozy’s statement in New York that it should be a G20 priority to “help the world find the path to growth”.

The letter has been signed by Prime Minister David Cameron, along with Prime Minister Gillard of Australia, Prime Minister Harper of Canada, President Yudoyono of Indonesia, President Calderon of Mexico and President Lee of South Korea.

In the letter, the leaders argue that in order to restore global economic confidence, a number of issues must be addressed at the next G20 leaders’ Summit at Cannes in November. The letter highlights:

- that President Sarkozy is right to call for the Cannes Summit focus to be to “help the world find the path to growth”

- that decisive action is needed to support growth, confidence, and credibility
leaders need to address the challenges of stagnating economies, declining global growth, and a loss in confidence in their ability

- the barriers to progress are now political as much as economic, and the Cannes Summit is the place to do this

- leaders must act individually in each country to address collective needs
the Eurozone must confront its debt overhang, deal with excessive deficits, strengthen the banking system, and improve competitiveness

- countries with long-term debt problems must put in place and implement credible, growth-friendly medium-term fiscal consolidation plans

- the completion of a trade deal would provide a strong economic stimulus.

“Well, I think what needs to happen is every country has got to face up to its own problems and difficulties and deal with them, whether that is debts in the Eurozone, whether it is problems in banks, whether it’s dealing with our deficits — every country has to do that," Mr Cameron said.

"And that’s why I’ve come together with leaders of countries in the G20 but as diverse as Mexico, Canada, Australia, South Korea and signed a letter to President Sarkozy, who’s leading the G20 this year, to make exactly that point — face up to the debts, to face up to the deficits, face up to the problems. Every country in the world has got to do that in a coordinated way so we can get growth moving.”

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