LOS CABOS, Mexico – Prime Minister Stephen Harper and his fellow G20 leaders will open their annual summit, Monday, breathing a little easier about the fate of the global economy.

The meeting in Los Cabos with begin with the traditional greeting and official pictures, but the prime minister’s focus will be set on the Euro crisis and international trade.

“The problems of the Eurozone remain very significant. The various debt crisis, the combination of banking and sovereign debt crisis remain very severe,” said Harper.

This meeting could either have a positive or a negative impact on Canada as the financial crisis in Europe is still a huge danger to world markets.

There was enormous anxiety as leaders gathered at the Mexican resort waited for the final results of Sunday’s crucial election in Greece.

And their relief was palpable when pro-bailout parties, led by the conservative New Democracy party, won enough seats to form a joint government.

A win by Greece’s anti-austerity parties could have resulted in the country defaulting on its debts and getting kicked out of the eurozone — a scenario that would likely cause untold turmoil on world financial markets.

Many Greeks reject the tough austerity measures the country agreed to in return for its two multibillion-euro rescue packages to help pay off its massive debt.

Last month, Greek voters punished politicians who backed the belt-tightening in favour of fringe parties that promised to ditch the austerity measures.

World leaders were quick to welcome Sunday’s election outcome.

“We look forward to working with the next government of Greece, and believe that it is in all our interests for Greece to remain in the Euro area while respecting its commitments,” said a statement released on behalf of the G7 leaders in Los Cabos.

However, despite the optimistic election result in Greece, Europe’s financial woes are still expected to dominate the two-day summit in Mexico.

The election in Greece of a pro-bailout party is a good sign, but Ian Lee with the Sprott School of Business says if a solid action plan is not created soon, Canada may be dragged into a fiscal mess.

“If they tip well then I think it’s very clear that the U.S. will also tip into recession. I don’t think we can avoid it, I think we’ll be dragged into recession as well as we did the last time,” explained Lee.

Even U.S. president Barack Obama says we are not out of the woods yet and we need to see a plan to deal with Europe’s financial future.

“To do what’s necessary to stabilize the world financial system, to avoid protectionism,” said Obama.

Lee says there may be some good news if the rumours are true and Canada get an invitation to the Trans-Pacific Partnership.

“Access to increased markets which means increased exports down the road and increased exports down the road and increased exports always mean increased jobs,” he said.

Twitter was abuzz Sunday with speculation Canada will be allowed to join talks on a proposed Trans-Pacific Partnership.

Canada’s trade restrictions on dairy and poultry products present the biggest obstacle to joining the nine-country talks.

Prime Minister Harper could have an announcement on Canada’s bid before he returns to Canada on Tuesday.

Before the summit officially begins this afternoon, Harper will be meeting this morning with South Korean President Lee Myung-Bak, British Prime Minister David Cameron and Australian Prime Minister Julia Gillard.