PM: Thank you very much. I've been pleased to participate in the G20 Summit here in Mexico. My engagements here in Mexico have reinforced in me how strong the Australian economy is.
It really is an island of strength in a world of economic upheaval, and someone remarked to me in those terms about just how strong the Australian economy is.
And all Australians should be proud about our strong economy because we built it together.
But we also have a stake in a stronger, more resilient global economy.
In a globalised world, all of our fortunes are ultimately interlinked.
That's why I am pleased to report that at the G20 here in Mexico, leaders have made progress on two fronts: first on the immediate situation in Europe, and second on the current and longer term challenges facing the global economy.
On Europe the G20 met at an important time. The current phase of the problems in Europe were started with the inconclusive election results in Greece and of course in a few days time there will be a very important meeting of the European Union attended by all 27 nations, including the 17 nations of the eurozone; 13 members of the eurozone are not G20 countries and we are not represented here.
Here at the G20 world leaders outlined a plan for addressing the crisis in Europe, and a plan for growth and jobs.
The plan makes very important advances on a long-term solution to the current problems facing Europe.
First and foremost, there was a resolute and firm commitment to growth.
All G20 members committed to strengthen global growth and restore confidence.
And that's growth accompanied by fiscal discipline, not growth or fiscal discipline, but growth and fiscal discipline.
Second, European leaders committed to take all necessary steps to safeguard the integrity and the stability of the euro area.
They acknowledged that this requires addressing the competitive imbalances within the euro area, including by continuing to undertake structural reforms at the national level.
Third, there was a significant advance towards greater European integration - more Europe, not less- based on irrevocable economic ties.
As outlined in the communiqué, Europe is moving to greater integration of its banking system.
That includes working towards a Euro Area Wide Deposit Insurance Scheme, bank recapitalisation and joint supervision of their banking system.
This is a significant development which will help break the negative feedback loop between the stressed banks and governments with significant debt burdens.
Euro area leaders are also working towards all-important fiscal integration.
Steps in this direction will strengthen the EU project now and into the future.
In this context, euro area leaders also committed to use euro-wide financial instruments to spur growth such as investment through infrastructure bonds.
On the world economy, the most significant immediate outcome of this meeting has been the increase in the resources available to the IMF.
All up $456 billion has been added to the resources of the fund, including the $7 billion from Australia which was pledged in April.
This is a concrete illustration of the global community pulling together.
There is now extra financial ballast to support the global economy in these times of ongoing uncertainty.
It's a breakthrough in terms of the countries' committing resources as well - big and small, including many developing nations.
This is an important outcome which Australia has been advocating strongly for over the last nine months.
Australia also co-chaired the G20 Working Group that helped deliver this outcome.
The G20 is also continuing to drive efforts to strengthen financial regulation. Leaders committed to the timely, full and consistent implementation of the agreed measures to support a stable and efficient financial system.
The G20 also reaffirmed and advanced its commitment to free trade.
World leaders formally committed to resist protectionist measures, the stand still and extended it until 2014.
They also agreed to make trade facilitation for global trade negotiations, keeping momentum in the WTO, so a very important outcome.
We know free trade is a driver of growth, it's a driver of jobs and as a result Australia strongly welcomes these outcomes.
On the broader challenges facing the global economy, the Los Cabos Growth and Jobs Action Plan represents an important statement.
The plan is important for at least three reasons.
First it commits leaders to country specific actions to promote growth.
In the case of Australia we are committed to ongoing investment in skills, tax, and transfer reform and investment in infrastructure.
China committed to progress its ongoing work towards exchange rate flexibility and reducing its current account surplus.
The US committed to work to avoid the upcoming fiscal cliff which it faces.
Second, countries committed to report transparently on their progress against these commitments.
Finally, and most importantly, this compact for the first time introduces a level of mutual accountability.
Countries' performance will be subject to peer review. If you like, we will be holding each other's feet to the fire. This is an important development for the G20.
So all in all, it's been a productive summit at a challenging time for the global economy.
We've made good progress, but as is always the case, the task we face to restore global growth is an ongoing challenge.
In these times when the global economy is such a strong talking point, Australians can continue to have confidence in their own economic situation.
Our economy is growing, we are creating more jobs, inflation is low, our Government's finances are strong.
Now, there will continue to be, no doubt, further problems and potentially further stumbles on the road to global recovery.
But throughout all of that, Australia with its strong economy will stand tall.
I'm happy to take questions.
JOURNALIST: Prime Minister, what's in the action plan specifically with jobs and growth in Australia?
PM: Well as I've outlined it records our commitments to work in skills, to work in tax and transfer reform and investment in infrastructure.
Obviously the entirety of our Government's strategy has been focussed on jobs and productivity, so the measures that you are quite familiar with back at home are all about focus on jobs
We have a number of those things appear in this action plan.
We'll always put jobs first. We did during the days of the Global Financial Crisis and will continue to do so.
JOURNALIST: Prime Minister, you said there would be significant developments and Europe agreed, that the eurozone members would agree to greater integration yet in the communiqué the eurozone said that they only had intentions to consider concrete steps toward more integrated financial architecture.
That sounds to me as though they're hedging their bets. Have they agreed to that or can you explain that in the context of your comments?
PM: Well I think we can and should have confidence that European leaders understand the severity of the issues which they face.
There was much discussion here at the G20 about the need for recapitalising banks in Europe, greater banking integration, greater fiscal integration, much focus on discussions about the next steps forward in Europe.
The communiqué you have before you records those discussions at the G20 but, of course, at every step of the way it has been clear to all that European leaders themselves meet before the end of the month.
JOURNALIST: Prime Minister, why did the United States not contribute anymore to the IMF?
PM: That's been a continuing situation for the United States so it's not new here at this G20 meeting.
It relates to the need for legislation and Congress approval which President Obama obviously believes would not be forthcoming so it's a specific situation for the US and it's not new at this G20 Summit.
JOURNALIST: Prime Minister, the communiqué suggests that the money to IMF is not specific to any particular region it's available to all members.
How significant is that, is there concern by some countries that they didn't want the money to just go to Europe?
PM: It's always been the position of the IMF and appropriately so, that its resources are about the whole world.
The IMF is there for the whole world, and so that is recording the fact of the IMF position and what is understood by leaders to be the position. That in my view is not new either.
JOURNALIST: Why do they need to say that?
PM: Well I think it's just recording the simple fact that that's what the IMF does.
JOURNALIST: Prime Minister, on trade, there was some expectation before the summit that the trade protectionism standstill would be extended two years. The communiqué only said one year. Was there some debate about that? Are you satisfied that there was a strong commitment against protectionism?
PM: Well clearly the words in the communiqué have been agreed so all leaders have agreed that there will be no lapse into protectionist measures and the standstill will endure to 2014.
From Australia's point of view, we are a great trading nation and because we are a great trading nation and we can confidently make our way in the world, we always press to see freer and freer trade, it's in our interests - we're good at it.
Obviously, nations have got a variety of perspectives on these things and it can be very hard for nations to resist a lapse into protectionism.
At the very first G20 Summit I attended, I made the point that I thought the real pressure to return to protectionist measures would actually not come in the immediate aftermath of the Global Financial Crisis but in the long years afterwards, as a number of nations continue to experience low growth, high unemployment and be in the business of fiscal consolidation - that is cutting back government expenditure of ten services that communities have come to rely on.
It was in those circumstances that leaders would feel the most pressure to return to protectionist measures.
So I think it's good that there is an extension of the standstill. Of course that means it will fall to Australia to be in the chair at the G20 when what lies beyond the days of the agreed standstill is defined.
JOURNALIST: Prime Minister, (inaudible) how would you describe the role that the German Chancellor Ms Merkel played, was she constructive at all?
PM: Oh absolutely, constructive.
JOURNALIST: Prime Minister, would you describe today's actions as bold and decisive, and how confident are you that there will be short-term decisions by the Europeans, particularly in relation to banking changes such as the Banking Deposit Insurance Scheme?
PM: Well I answered that question when I responded to Simon. So I refer you to those words.
Yes Karen.
JOURNALIST: While you've been in the meeting today we've got news that Julian Assange is in the Ecuadorian embassy in London and is seeking asylum there. Can I get your response to that and how would you characterise Australia's relationship with Ecuador, and has your government had any contact with the Ecuadorian government over this issue?
PM: Well Mr Assange's decisions and choices are a matter for Mr Assange. We, our officials, our consular officials, will be in contact with him and also with Ecuador in London about this, but his decisions in relation to this matter are for him to make.
I would make this point, that Mr Assange has been in receipt of consular assistance every step of the way. Indeed the Foreign Minister has remarked that he has received more consular assistance than any other Australian in a comparable period.
He's received the benefit of full consular support and of course Australia will continue to support Mr Assange, just as we do support any Australian overseas who faces legal difficulties or dilemmas.
JOURNALIST: And why do you think he's saying that you have abandoned him then?
PM: You'd have to ask Mr Assange that.
JOURNALIST: Prime Minister, he says that you are not protecting him from being extradited to a foreign country that applies the death penalty for the crime of espionage and sedition.
PM: Well, let's be very clear about this. Australia opposes extradition in death penalty cases. We do that for every Australian citizen. We would do that for any Australian citizen.
The legal matters that Mr Assange faces are matters of a sexual complaints nature involving the laws of Sweden, so that is the legal issues that Mr Assange faces.
But the position of the Australian Government on death penalty cases and extradition is well known and applies for every Australian citizen.
JOURNALIST: So you'll go into bat for him if the US tries to extradite him to America?
PM: Well you're dealing with hypotheticals here and I'm not prepared to hypothesise about an individual, but I am going to be very clear with you.
For any Australian citizen, at any time, in any circumstances, we oppose extradition for death penalty cases.
JOURNALIST: Prime Minister on the UN Rio Summit you're about to go to. What would be your measures of success for that summit?
PM: Well the purpose of the Rio Summit is to talk about sustainable development, sustainable global growth, sustainable in two senses: environmentally and socially.
As a nation, I think we can point to a proud track record of both work in the environmental area and in the social policy area to create a fair nation that is very conscious of preserving our beautiful natural environment, including now extending to our marine environment through the marine reserves that Minister Burke has announced, so I will be speaking on those kind of questions when I get to Rio.
JOURNALIST: Prime Minister just to take you back to your first comments about the G20 itself and how this meeting over the last couple of days reaffirms your confidence in how strong the Australian economy was-
PM: Correct.
JOURNALIST: Is that because you're surprised about just how dire the situation is in Europe and globally after talking to all the world leaders.
PM: No, that's because of how strong the Australian economy is and so it's the subject of a lot of focus and a great deal of envy around the world.
When I go through how our economy is performing with other leaders, when I tell them about our growth rates, about our unemployment rate, about the situation of being Triple A rated by all major credit agencies, that we've been upgraded; their common response is to sigh with a certain degree of wistful envy because most of them are facing situations where they are seeing no growth, or very low growth, they are facing very high and persistent unemployment.
Many have sovereign debt issues - which of course have been well canvassed at this meeting and in other meetings - many of them are facing downgrades.
JOURNALIST: (Inaudible) the Australian way?
PM: I talk proudly about Australia and the Australian way in all circumstances.
JOURNALIST: How was the relationship between European and non-European leaders inside that room? We've heard last Francois Hollande from France - he's concerned about getting advice from outside of Europe (inaudible). Did you detect any of that in the room?
PM: Look the situation in Europe is a stressful one. A stressful one for European leaders and, you know, and consequently I'm not surprised that people are feeling that pressure; that pressure is real.
But we come here to the G20 to talk between leaders about circumstances in the global economy. And what happens in the eurozone matters for the global economy. That's why it's been the subject of discussion here.
Of course European leaders will meet towards the end of the month, 27 of them, 17 in the eurozone, and have very detailed discussions.
But you would expect that a body focused on the future of the global economy and its current real stresses and strains - you would expect it to talk about circumstances in the eurozone.
I mean to put that to you very frankly, can you imagine the alternative?
Can you imagine that leaders of the top 20 economies in the world would have gathered at this time and not spoken about the circumstances in the eurozone?
I mean, clearly that's absurd. It can impact on the global economy. We live in a very interconnected world.
This is a severe set of circumstances and consequently it was the subject of discussion.
In terms of relationships between leaders, I think there was very constructive engagement on all questions, even some very difficult questions.
JOURNALIST: Prime Minister, were there any other discussions on the margins of the summit (inaudible)?
PM: Look I had the opportunity during the course of the two days to actually speak to all attendees, so it's a good opportunity because of the relatively small number of people who attend this meeting to be able to get round and speak to your counterparts so I've had the opportunity to do that.
I've just had a bilateral meeting with the President of Mexico where I congratulated him not only on the successful hosting of the G20, but Mexico has announced that it will become a party in the Trans-Pacific Partnership talks.
Australia is obviously involved in the Trans-Pacific Partnership talks. Canada has also announced that it is joining the TPP at this meeting. That is good news.
We are talking about a trade arrangement, the better facilitation of trade between nations that represent around 30 per cent of the world's GDP.
Thank you very much.