DAVOS, Switzerland (MarketWatch) -- Mexican President Felipe Calderon urged Europe on Thursday to "take out the bazooka immediately" in order to resolve its long-running sovereign debt crisis. In a speech at the annual meeting of the World Economic Forum in Davos, Calderon said Europe needs to create a firewall to prevent the spread of panic. "The more money you put in the firewall, the more confidence you create," Calderon said, as he noted that there are some lessons to be learned from Mexico's debt crisis in 1995. The Mexican president said that debt renegotiation combined with international financial support is what several euro-zone economies, including Greece, need. Discussing debt-laden Italy, Calderon said: "Italy has a problem of liquidity. If we don't help Italy to fix its liquidity problem, it could have a solvency problem....We need to use the bazooka right now to protect Italy." Mexico currently holds the presidency of the Group of 20 nations and Calderon laid out his priorities for the group, which include strengthening international financial institutions, dealing with the euro crisis, addressing climate change, and ensuring food security.