Finance Minister Jim Flaherty is expected to argue against international assistance for Europe at a time when some in the G20 are raising the possibility of a more active role for the International Monetary Fund.
The government of Mexico is turning to Finance Minister Jim Flaherty for advice as it prepares to host the G20, taking the reigns after France's presidency failed to resolve the ongoing euro crisis.
Mr. Flaherty will be the only foreign finance minister in attendance on Tuesday in Mexico City when deputy ministers of the G20 gather to plan for 2012.
Canada's Finance Minister is expected to push his tough-love message and argue against international assistance for Europe at a time when some in the G20 are raising the possibility of a more active role for the International Monetary Fund. Mr. Flaherty outlined his opposition to IMF support for Europe earlier this month to reporters in Ottawa.
"These are not poor countries. These are relatively rich countries in the world and many of the countries in the G20 have high levels of poverty, of people who are not living at the standards that people live in Europe," the minister said last week.
A Canadian government source confirmed Mr. Flaherty's trip but officials from the Mexican embassy in Ottawa could not be reached for comment.
Canada's reluctance to support a greater role for the IMF in the euro zone – a position Prime Minister Stephen Harper expressed publicly when G20 leaders met in Cannes, France, in November – has possible exceptions. Mr. Flaherty has said Canada "would look at" contributing more money to the IMF provided that it was mainly to support poorer countries affected by the crisis in Europe.
At a practical level, Mexico appears to have already learned lessons from Canada. Rather than holding the summit in a large city like Toronto, the 2012 gathering will be in Los Cabos, on the southern tip of the Baja California Peninsula.
The June, 2012, summit will be followed a few weeks later by a national Mexican election that marks the end of the controversial six-year term of President Felipe Calderon, whose deadly crackdown on drug cartels led critics to accuse him of going too far. Human-rights activists filed a complaint last month with the International Criminal Court accusing the President of tolerating crimes against humanity.
Mexico's economy is increasingly attracting international attention as a source for future growth at a time when more developed economies stagnate.
At the onset of the global financial crisis in the fall of 2009, the G20 emerged as the leading forum for coordinated global action. The immediate and unanimous decision to stimulate domestic economies and boost lending is widely seen as having averted an even more dire outcome. However, the unanimity and effectiveness of the G20 has waned.
France's leaders' forum in November was built up as the venue for Europe to unveil a clear plan to sooth nervous markets and rating agencies. Instead, the event was hijacked by political drama in Greece after then Greek prime minister George Papandreou announced a surprise referendum, only to later reverse his decision and resign.
No firm EU plan was achieved in Cannes, and Europe's latest plan on Friday was widely criticized as markets opened down on Monday.
Bill Curry