LOS ANGELES TIMES: The Treasury secretary, speaking at the summit in Toronto, says the global recovery remains fragile and that ill-timed austerity measures could derail gains. Obama meets privately with other leaders.
Reporting from Toronto — They smiled for photos and announced agreement on everything from nuclear containment to development efforts in Africa on Saturday, but world leaders gathered in Toronto have a tougher challenge as they get down to brass tacks on the best way to keep the global economic recovery from stalling.
Going into Sunday's meetings with the Group of 20 industrialized and emerging nations, the Obama administration was pressing leaders to stay the course they set more than a year ago to promote growth through government investment in the economy.
Spooked by economic meltdowns in Greece and elsewhere on their continent, European leaders came to those talks concerned about racking up a damaging level of debt. Their proposal of a punitive global tax on banks to fund future bailouts was meeting opposition from other nations but remained under consideration late Saturday.
But U.S. and Canadian leaders predicted that a common purpose would emerge before the G-20 summit ends Sunday, one representing a balance between economic stimulus and plans for deficit reduction.
"We have to find the right balance, and that balance is going to differ across countries," Treasury Secretary Timothy F. Geithner said. "But I think you're going to see a strong commitment again by these major economies to do what is necessary to make sure that we are supporting recovery and getting that balance right." >>> Christi Parsons, Los Angeles Times | Sunday, June 27, 2010
