G20: Important steps imminent?

If you think one summit is going to solve the eurozone's or the globe's economic problems you'll be disappointed.

So says the Chancellor but he also believes that the pressure which has been exerted on Germany here at the G20 is telling. That and the realisation that even after what's been hailed by many as the best possible Greek election result for the Euro and a bailout of Spanish banks the markets are still restless and are still demanding very high interest rates before agreeing to buy Spanish debt.

The British government is hopeful that when the big four European economies - Germany, France, Italy and Spain - meet President Obama and David Cameron tonight they will signal that they are ready to take an important step: To use European funds either to underwrite the banks or to buy the debt of troubled eurozone economies.

In simple terms this is a recognition that the eurozone economies are, to coin a phrase, all in this together. In the jargon it is a step towards debt mutualisation using two existing funds - the EFSF and ESM - but not issuing Eurobonds.

This G20 has, say British officials, been different from the last one in Cannes. Last November the discussion of the Eurozone's problems was alongside worries about a slowdown in China and America's fiscal problems. Now, they claim, the Eurozone crisis is seen by all as the key cause of global economic uncertainty.

The Chancellor is also signalling that he will take a step towards what Vince Cable called Plan A+ by announcing further investments in housing and infrastructure in the next few weeks - not using fresh government funds but underwriting and, therefore reducing the risk, for private sector investors.