Eurozone countries slowly reaching accord on tackling debt crisis, says George Osborne

"I think one thing we have learnt is: don't expect a single summit to solve the eurozone's problems, otherwise you are going to be disappointed," he said.

"I am not claiming that this summit has solved those problems but the eurozone is inching towards solutions."

No details of a possible scheme were available but it is thought that eurozone countries are considering using injections of funds through the European Central Bank or the single currency bailout mechanisms to shore up weaker countries like Greece and Spain.

Massive pressure has been placed on the EU members of the G20 in Los Cabos, particularly Germany, to take further action, after markets failed to respond to the recapitalisation of Spanish banks and the election of pro-bailout parties in Greece.

The resources would be designed to spread the risk of debt between the 17-nation euro bloc, and reduce the high interest rates on government bonds which have made it difficult for Athens, Madrid and Rome to service their debts.

A planned meeting between US President Barack Obama and the leaders of Germany, Italy, France and Spain, as well as Prime Minister David Cameron, was cancelled last night after the Americans decided enough progress was made in direct talks between Mr Obama and German Chancellor Angela Merkel earlier in the day.

Mr Osborne said: "There is no doubt that the problems now are in the eurozone but what the G20 can do is put pressure on the eurozone to fix those problems, add to the pressure that was already there. And it can take measures to prevent these problems spilling over even more than they are into the rest of the world economy, for example by resisting protectionist measures which some countries want to introduce."

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