G20 leaders agree to boost IMF resources

CANNES, Nov 4 (Agencies): G20 leaders in Cannes have ended their summit with a plan to boost growth and rebalance the global economy. The ongoing eurozone debt crisis has dominated the summit. The leaders of world biggest economic powers also turned their attention on Italy pressing for measures to prevent Rome from following Greece into the abyss of debt. Senior European Union officials said Italy's economy would be put under IMF surveillance. Italy bridled at the claim, insisting its measures were being monitored by the European Commission with only "advice" from the world's top lender, but Prime Minister Silvio Berlusconi's reforms were clearly under scrutiny. In a closing press conference, French President Nicolas Sarkozy said: "We will fight to defend Europe and the euro." He said the G20 had agreed to boost the resources of the International Monentary Fund (IMF) and would agree on specific steps by February. Mr Sarkozy also said that France and Germany were in favour of a financial transactions tax and they hoped it would be implemented in 2012. British Prime Minister David Cameron said it was "essential for confidence and economic stability" that the IMF had the resources it needed, but reaffirmed that the UK would not contribute to any eurozone bailout. Also at the summit, EU Commission President Jose Manuel Barroso said that Italy had asked the IMF to monitor the implementation of its economic reforms. The reforms will be based on the package that was outlined by Italian Prime Minister Silvio Berlusconi in a letter to EU leaders last week. The leaders' hope is that increased resources will help the IMF to support struggling eurozone economies, such as Greece. Mr Barroso said that he hoped Greece would stay in the euro, but added that the country would need to take on the responsibilities that come with membership. Meanwhile, the United States was encouraged during negotiations at the G20 summit that China seemed more open to the idea of allowing its currency to appreciate, a senior US official said on Friday.