PRIME Minister Julia Gillard has praised efforts by European leaders to stabilise the sovereign debt crisis in a meeting with French President Francois Hollande.
Mr Hollande arrived in Laos on Monday for a summit between European and Asian leaders, saying his overarching message was that "Europe is still an economic power".
The meeting in Vientiane comes amid a poor outlook for the global economy, which includes deteriorating prospects for Europe where unemployment continues to rise.
The International Monetary Fund has recently cut its forecast for world output to 3.3 per cent for 2012, down from 3.5 per cent, while figures released last week showed unemployment across the Eurozone had risen to a record 11.6 per cent.
Ms Gillard and Mr Hollande met on Monday afternoon on the sidelines of the Asia-Europe summit, where the agenda is squarely focused on the economic woes facing Europe.
European leaders attending the talks are expected to provide an update on efforts to address financial market tensions, restore confidence and stimulate growth and jobs.
The issues of reform of international financial institutions and protectionism are also on the agenda.
Ms Gillard and Mr Hollande discussed the global economy in their talks, as well as global security.
It's understood Ms Gillard told Mr Hollande Australia "welcomed steps taken by Europe to stabilise the sovereign debt crisis", including Europe's new bail out mechanism and expanded central bank role.
Ms Gillard noted the challenging task of balancing fiscal consolidation with policies that promote economic growth and the generation of jobs.
Ahead of the meeting, Mr Hollande had talked about the need for Europe to boost trade with Asia's fast-growing economies.
He said the main aim of his first trip to Asia since taking office in May was to bring the message that "Europe is still an economic power".
"I'm here to reassure Asian countries" but at the same time "to tell them that they also have a role to play in European and global growth".
"Asians have gained a lot from our growth. Now it's time for them to boost our growth with their demand."
Ms Gillard and Mr Hollande also discussed Iran and Syria - both of which are being dealt with by the UN Security Council which Australia last week was appointed to as a temporary member.
It's understood Ms Gillard reinforced Australia's position that it supports "strong sanctions" against Iran.
Ms Gillard told Mr Hollande Australia had "consistently expressed its strong concerns" about Iran's nuclear program and its failure to abide by its Nuclear Non-proliferation Treaty and International Atomic Energy Agency obligations.
The prime minister also briefed Mr Hollande on the Asian century white paper, which maps out Australia's plan to engage more with Asia.
"Australia has a clear national plan for its own outlook for growth which is the white paper," Ms Gillard said earlier in the day.
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