European Union leaders met on Sunday and have vowed to reveal their response at a second gathering on Wednesday to overcome a crisis that has threatened to pitch the world into a fresh recession. In opening a business summit of Commonwealth leaders in Perth, Gillard told the 54-member nations they all stood to suffer if the correct response from Europe was not forthcoming. "Our deepest uncertainty comes from Europe," she said, adding that countries around the world that worked hard to maintain prudent financial oversight and balanced growth were being impacted by the economic contagion. "Yes, we acknowledge the steps Europe has taken and how painful they have been. But much more needs to be done, and needs to be done fast," she said. European leaders must stabilise the situation by resolving sovereign debt issues and ensure there were adequate safeguards to avoid contagion, the Australian prime minister added. "Europe also needs to ensure that its private banks are adequately capitalised to ensure stability and growth. "This is no time for delay." Of the 54 Commonwealth nations, five are members of the G20 and Gillard said they will go to Cannes for the Group of 20 leaders' summit in November with the message that it is critical there is global financial change. She called on the G20 to strike the right balance between addressing short-term risks and pledging reforms that promote growth into the future. "The G20 Action Plan will need to outline the commitments and measures required to achieve stronger economic growth," she told the business summit. "The G20 also needs a strong development agenda, particularly in areas such as food security, infrastructure and remittances." Commonwealth leaders, including those from Britain, Canada and South Africa, gather in Perth from Friday for their own biennial meeting with reform of the organisation high on the agenda. Composed mainly of former British colonies, the Commonwealth Heads of Government Meeting will hold three days of talks amid tight security until Sunday, with Queen Elizabeth II officially opening the summit.