Growth and austerity both needed: Gillard

19 Jun 2012, 6:19 pm   -   Source: AAP

Prime Minister Julia Gillard says G20 leaders recognise that growth and austerity must go together to fix economic woes.

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Prime Minister Julia Gillard says G20 leaders recognise that growth and austerity must go together to fix economic woes.

Speaking to reporters at the end of the first day of the summit in the tourist city of Los Cabos, Ms Gillard said the talks had been "comprehensive and frank".

"It was acknowledged by many in the discussions that growth and austerity are not polar opposites but they are strategies that need to be combined," she said.

A working draft of the final communique refers to a commitment by all G20 countries to "adopting all necessary policy measures to strengthen demand, support global growth and restore confidence".

G20 leaders are also expected to confirm the doubling of International Monetary Fund resources to $430 billion, which Ms Gillard described as a "good outcome".

Each country will spell out - through a "Los Cabos Action Plan" - measures they will take to address growth and jobs while keeping their budgets in check.

Ms Gillard said the G20 had received a clear indication from European leaders of their intention to maintain the integrity of the eurozone.

It was in Australia's interest and the interests of the world to see stability in the eurozone.

"Eurozone leaders including (German) Chancellor Merkel are very clear about their determination to see the integrity of the eurozone continue," Ms Gillard said.

"Actions have been taken (but) ... it is transparent to us all that more needs to be done."

G20 Summit

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