World leaders are piling the pressure on Europe to take ambitious steps to resolve its debt crisis.
The G20 summit in Mexico is set to urge Europe to take "all necessary policy measures" to resolve the crisis which has been going on for over two years.
The main developments at the G20 summit so far are:
- G20 draft communique urges bold action from Europe
- Risk of a break-up of the euro recedes
- US President Barack Obama meets German Chancellor Angela Merkel and other European leaders on the crisis
- Germany hints at limited flexibility on Greek rescue plan
US President Barack Obama is concerned that the problems in Europe could harm his chances of being re-elected.
After meeting with European leaders his spokesman said Obama was "encouraged" by the talks, which looked at ways of getting European banks to work more closely together.
ITV News Political Correspondent Chris Ship reports from Mexico:
However, European officials have hit back at the idea they are to blame for weakening growth across the globe.
They also played down hopes for any quick "miracle cure" for the euro zone of 17 nations.
– Jose Manuel Barroso, European Commission President
Frankly, we are not coming here to receive lessons in terms of democracy or in terms of how to run our economy.
Leaders from the G20 countries are working out ways to promote economic growth and jobs against a bleak backdrop of a weakening global economy.
The World Bank last week lowered its forecast for global growth in 2012 to 2.5 percent and said developing nations faced a long period of financial market volatility and weaker growth.
But, in its strongest signal in three years that it would act to strengthen the recovery, the G20 said in their draft document that countries without heavy debts problems were ready to act together to help stimulate growth - if the economy slows a lot more.
The United States has pressed Germany as well as China to stimulate spending in order to help the world economy.