G20 leaders have accepted a Canadian compromise on post-recession economic policy that includes aggressive deficit-cutting targets but allows individual countries to devise their own approach to meeting those goals. It's a saw-off between U.S. President Barack Obama, who favours continued economic stimulus spending to head off a double-dip recession, and European leaders who want G20 countries to move swiftly to reduce debts run up during the 2008-09 economic slowdown. “Advanced economies have committed to fiscal plans that will at least halve deficits by 2013 and stabilize or reduce government debt-to-GDP ratios by 2016,” reads a leaked draft communique. But the leaders also agree to support economic growth policies and recognize that some countries will start cutting their budget deficits later than others. “We are committed to taking concerted actions to sustain the recovery, create jobs and to achieve stronger, more sustainable and more balanced growth,” the communique says. “These (actions) will be differentiated and tailored to national circumstances.” The G20 has also concluded it will be left up to individual countries to decide whether they want to impose a bank tax or establish some kind of rainy day fund to offset another financial collapse that sparked the worldwide recession, the Star has confirmed.
No comments:
Post a Comment