Washington: The current economic crisis in Europe would be at the centre of the G-20 discussions in Mexico, White House officials said on Saturday and noted that growth slowdown in emerging markets like India and China too would figure in talks of leaders from top 20 economies of the world.

"The situation in Europe will be central in leaders' minds when they arrive in Los Cabos (in Mexico). It's the dominant risk to the global economy at the moment," Michael Froman, the Deputy National Security Advisor, told reporters at a White House news conference ahead of the next week's G-20 Summit in Los Cabos in Mexico.

"The overwhelming focus of this G-20 is likely to be how to promote and maintain global economic growth," Froman said as his colleague from the Department of Treasury, Lael Brainard, the Undersecretary of the Treasury for International Affairs noted that slowdown in growth of some of the emerging economic would also be a topic of discussion at the G-20 Summit.

Prime Minister Manmohan Singh is attending the G-20 Summit.

"Beyond the events in Europe, growth in many key emerging markets is also flagging. Many of these countries, such as China, have the fiscal and monetary capacity to take actions to spur domestic demand and to help support global growth," she said.

"The G-20 will look to maintain momentum on rebalancing demand, which is critical to stronger overall growth. And key, of course, to achieving this, among other things is for China and other surplus- emerging market economies to take fiscal and other measures to support domestic consumption, as well as allowing exchange rates to reflect market forces," Brainard said.

"In short, the focus of Los Cabos will be supporting growth and ensuring our European partners are escalating their response to reinforce financial stability, recognizing the stakes are high for all of us," she said.

Froman said at Los Cabos the G-20 looks forward to hearing more from the European leaders on the progress of their efforts to stabilize their banking system and promote growth, and to hear what their vision is for taking this effort forward toward fiscal and financial union.

That being said, Los Cabos will not be the final word on the Eurozone, he acknowledged.

The US, Froman said, will continue to provide global leadership in terms of strengthening the global recovery.

"(The US) President (Barack) Obama is intensely focused on creating jobs, and that's why he's put forward proposals to cut taxes for small businesses hiring, to help families refinance their homes, to invest in infrastructure, and to put teachers, firefighters and police officers back to work," he said.

Noting that Europe is America's largest export market, Brainard said so weaker demand in Europe means weaker job growth here at home. European banks are interconnected with financial markets around the world, so volatility in Europe undermines sentiment here at home.

"For that reason, Europe will be at the center of discussions in Mexico. Los Cabos provides a timely opportunity for European leaders to update on their progress and to serve as a catalyst for future action looking ahead to their council meeting at the end of June," she said.

"European leaders have told us they're committed to do whatever it takes to strengthen their monetary union. They're currently focusing on four important areas to escalate their response," she said.


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