Europe and U.S. play down their differences before the G20
June 26, 2010
United States and Europe have sought Friday to minimize their differences over how to fight against deficits, inflated by two years of crisis, without undermining an economic recovery remains fragile.
The topic was discussed among the G8 leading industrialized countries on the eve of a summit of G20 will focus on Saturday and Sunday in Toronto on strategies to end the crisis.
Faced with unemployment still high, Washington had urged its allies to give priority to the consolidation of economic recovery when the Europeans, stung by the Greek crisis and a wave of distrust of markets, increasing them Ad plan of austerity.
A senior U.S. administration has indicated a consensus among the G8 countries on the need to focus on immediate growth and "medium-term" to address the deficits.
"There is a broad consensus among G8 leaders, a convergence of views if you will, on the pursuit of sustainable growth while reaffirming, of course, shared common commitments on the progress of fiscal consolidation," Has he said Friday.
In an EU source, this means that if the fiscal consolidation necessary, the withdrawal of political support to the activity "must be phased in over time and be done progressively, depending on the situation of each country" .
German Chancellor Angela Merkel, who has joined the rest of Europe in the fight against deficits, simply noted that the discussion among G8 members "was not controversial and was based on a mutual understanding" .
British Prime Minister David Cameron had earlier said that the correction of imbalances between exporting countries that generate large surpluses and indebted economies involved an effort by the United States.
"Part of the fight against imbalances is for countries with larger deficits, roll up their sleeves and get to work to ensure that we do not live beyond its means", he said.
Intertwined
Born in late 2008 to coordinate the fight against the financial crisis threatening the global economy collapsed, the G20, which combines the major industrialized countries of the G8 and major emerging economies, has now lost its original momentum.
Fears of widespread recession decreasing, disagreements have emerged in recent months on issues such as strategies of crisis or financial market regulation.
On this last topic, Barack Obama on Friday invited other G20 countries to follow the example of the United States when it comes to get a vote in Congress for an overhaul of the regulatory sector.
"Hopefully this weekend in Toronto we will build on this progress in coordinating our efforts for economic growth, the continuation of financial reforms and strengthen the overall economy," he said.
"We need to act together for one simple reason: the crisis has proved and events continue to show that our economies are inextricably linked," said Bush.
If the United States believe they have done their part of commitments made with the legislation passed Friday, Europe will claim its part of the G20 a tax on banks and other financial transactions.
Hostile to such projects, countries such as Canada and Japan argue that their banks have weathered the crisis, should not be subject to such sanctions.
In an interview with Angela Merkel on the sidelines of the G8, Prime Minister of Japan Naoto Kan has argued for the individual situation of each country is taken into consideration in such discussions.
The German Chancellor has conceded his side that things "do not show up very well" on this front.
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