G7 financial leaders to discuss crisis

Financial officials from the Group of Seven industrialised nations will discuss how to coordinate action between their countries' central banks, a source said today.

The move follows several days of market panic and a downgrade of the US credit rating.



The person spoke on condition of anonymity because the level and timing of the contacts had yet to be confirmed.



French Finance Minister Francois Baroin, whose country currently holds the G7 presidency, said he had been in close contact with his G7 counterparts "throughout the previous days and also this very morning".



"We'll be carefully watching the evolution of what might happen on Monday," Mr Baroin told France's RTL radio, without providing details on the contacts. The G7 members are Britain, Canada, France, Germany, Italy, Japan and the US.



Standard & Poor's downgrade of the US credit rating yesterday added to growing fears over debt levels and economic growth in the world's biggest economy and in large European nations, like Italy and Spain.



The European Central Bank has so far been reluctant to intervene in the large Italian and Spanish debt markets in an attempt to stabilise plummeting bond prices, as it has previously done for Greece, Ireland and Portugal, the three eurozone countries that have already been bailed out.



But Luc Coene, the head of Belgian's central bank and a member of the ECB's decision-making board, said yesterday that the ECB may be prepared to help Italy and Spain once the two countries have taken more concrete steps to get their public finances under control.



Many investors have also been calling on the US Federal Reserve to start pumping money into the US economy again, as it has done through two large-scale bond buying programmes since the 2007 financial crisis, to help underpin the nation's slowing economic recovery.



Italian Premier Silvio Berlusconi and EU Monetary Affairs Commissioner Olli Rehn yesterday called for coordination between G7 countries.



The downgrade of the US credit rating is also bad for Europe, whose economy is closely linked to the US and whose weak members depend on a healthy global economy.



Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Louis Theroux: By Reason of Insanity takes him behind the bars again
tvBy Reason of Insanity, TV review
Arts and Entertainment
Cassetteboy's latest video is called Emperor's New Clothes rap
videoThe political parody genius duo strike again with new video
News
Stephen Hawking is reportedly taking steps to trademark his name
people
Sport
Seth Rollins cashes in his Money in the Bank contract to win the WWE World Heavyweight Championship
WWERollins win the WWE World Heavyweight title in one of the greatest WrestleMania's ever seen
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: IT Buyer

Negotiable: Recruitment Genius: This award winning IT company are currently re...

Recruitment Genius: IT Account Manager

£20000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Domestic Gas Breakdown Engineers

£28000 - £32000 per annum: Recruitment Genius: Domestic Gas Breakdown Engineer...

Recruitment Genius: Domestic Gas Breakdown Engineers

£28000 - £32000 per annum: Recruitment Genius: Domestic Gas Breakdown Engineer...

Day In a Page

No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat
Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

Saudi airstrikes are fuelling the Gulf's fire

Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

The only direction Zayn could go

We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

Spells like teen spirit

A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

If fashion is a cycle, this young man knows just how to ride it

British designer Jonathan Anderson is putting his stamp on venerable house Loewe
Number plates scheme could provide a licence to offend in the land of the free

Licence to offend in the land of the free

Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

From farm to fork in Cornwall

One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
Robert Parker interview: The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes

Robert Parker interview

The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes
Don't believe the stereotype - or should you?

Don't believe the stereotype - or should you?

We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor