G20 leaders agree to halve budget deficits by 2013
Tuesday, 29 June 2010
From Fazle Rashid
NEW YORK, June 28: The leaders of the world's 20 wealthiest nations at their summit level meeting in Canada conceded that the budget deficits represented the biggest threats to their economic stability. They have decided to reduce the budget deficits to halve by 2013
They also agreed to move cautiously so that spending cuts did not upset the fragile global recovery. The leaders agreed to keep a watchful eye so that spending reductions do not stymie growth and lead to double digit recession.
The G20 countries are developing rules that would require banks to hold more capital and be better equipped to absorb losses when financial conditions deteriorate. But it could be years before the new rules take effect
The new rules however are to be finished before the next G20 summit set for Seoul, South Korea in November. The participants said they aimed to adopt the new rules by 2012 but cautioned that the standards would be phased in over a time frame that is consistent with sustained recovery and limits market disruptions, the New York Times in a report said today.
President Obama denied any rift over deficits saying G20 is in " violent agreement " on the issue. It is also being said deficit reductions are tailored to national circumstances. The joint statement acknowledged both sides of the debate.
There is a risk that synchronised fiscal adjustments across several major economies could adversely impact the recovery, the statement said. there is also a risk that the failure to implement consolidations where necessary would undermine confidence and hamper growth, the NYT reported.
Dominique Strauss-Kahn, Managing Director of the International Monetary Fund injected hope and optimism stating " he thought the risk of a new downturn are minimal. We ( IMF ) don't forecast any double dip and said double dip was not discussed in the meeting.
The European leaders have agreed to conduct stress test on their banks in a bid to restore market confidence. The best thing that countries with fiscal challenges can do is to live within their means. At China's urging the G20 leaders removed from the joint statement any clause to praise it for agreeing to make exchange rate flexible.
NEW YORK, June 28: The leaders of the world's 20 wealthiest nations at their summit level meeting in Canada conceded that the budget deficits represented the biggest threats to their economic stability. They have decided to reduce the budget deficits to halve by 2013
They also agreed to move cautiously so that spending cuts did not upset the fragile global recovery. The leaders agreed to keep a watchful eye so that spending reductions do not stymie growth and lead to double digit recession.
The G20 countries are developing rules that would require banks to hold more capital and be better equipped to absorb losses when financial conditions deteriorate. But it could be years before the new rules take effect
The new rules however are to be finished before the next G20 summit set for Seoul, South Korea in November. The participants said they aimed to adopt the new rules by 2012 but cautioned that the standards would be phased in over a time frame that is consistent with sustained recovery and limits market disruptions, the New York Times in a report said today.
President Obama denied any rift over deficits saying G20 is in " violent agreement " on the issue. It is also being said deficit reductions are tailored to national circumstances. The joint statement acknowledged both sides of the debate.
There is a risk that synchronised fiscal adjustments across several major economies could adversely impact the recovery, the statement said. there is also a risk that the failure to implement consolidations where necessary would undermine confidence and hamper growth, the NYT reported.
Dominique Strauss-Kahn, Managing Director of the International Monetary Fund injected hope and optimism stating " he thought the risk of a new downturn are minimal. We ( IMF ) don't forecast any double dip and said double dip was not discussed in the meeting.
The European leaders have agreed to conduct stress test on their banks in a bid to restore market confidence. The best thing that countries with fiscal challenges can do is to live within their means. At China's urging the G20 leaders removed from the joint statement any clause to praise it for agreeing to make exchange rate flexible.