G-20 Crafts Economic Plan amid Growing Uncertainty

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President Obama and other top world leaders are wrapping up the G-20 summit in Mexico Tuesday, where they're expected to announce an agreement to grow the global economy.

The weekend elections in Greece relieved some of the pressure, but major challenges still loom on the horizon.

The G-20 leaders are trying to bring the world's debt crisis under control.

Voters in Greece narrowly kept the country's economy from plunging and spared the U.S. stock market and other markets from potentially wild upheavals.

They've elected a new government that supports bailout measures and sticking with the euro as their currency.

But with unemployment at 22 percent and youth unemployment at 51 percent, Greece still faces huge uncertainty.

Now the Greek government is supposed to make more cuts -- 150,000 government workers and $14 billion from the budget in order to get the new loans.

Without those loans, Greece will be broke in just a few weeks, and that could hit American businesses hard and everyone's 401(k)s.

"If we have any hope of healing, we're all in the same boat together, we're not an island," said American economist Diane Swonk. "The U.S. is not an island."

Now, G-20 leaders are expected to unveil a coordinated plan for job creation, which they call a top priority in addressing the European economic crisis.

Obama is pushing Europe to come up with a bold plan for stability because Europe's crisis affects the U.S. economy and his re-election bid.

Polls show Americans are increasingly frustrated with the president's handling of the U.S. economy.

"Now is the time, as we've discussed, to make sure that all of us join to do what's necessary to stabilize the world financial system, to ensure that we are working hand-in-hand to both grow the economy and create jobs," President Obama said at the summit.

Some leaders want to create a powerful organization to police and insure all the banks in the 17 eurozone countries.

One of those countries, Spain, may soon be looking for a bailout.

Concerns about Spain drove that massive economy's borrowing costs dangerously close to the level at which economists say it too would need a bailout.

Eurozone financial institutions offered a 100-billion euro rescue plan for Spain's banks last week.

Now G-20 leaders are trying to reassure investors that Spain's treasury won't end up eating the costs of that bailout.

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CBN News
Mark Martin

Mark Martin

CBN News Reporter

Mark Martin is a reporter and anchor at CBN News, covering various issues from military matters to alternative fuels. Mark has reported internationally in the Middle East and traveled to Bahrain to cover stories on the U.S.S. Dwight D. Eisenhower. Follow Mark on Twitter @MarkMartinCBN and "like" him at Facebook.com/MarkMartinCBN.