Sunday, 27 June 2010

World on Economic ‘Tightrope:’ Harper

THE GLOBE AND MAIL: Summit turns to dilemma of sustaining growth versus cutbacks

Finance Minister Jim Flaherty and Prime Minister Stephen Harper. Photograph: The Globe and Mail

Group of 20 leaders meeting in Toronto Sunday will try to come up with an agreement on fiscal belt-tightening that finds the right balance between telling markets they are serious about cutting deficits and debt, and keeping the global economy from backsliding.

Prime Minister Stephen Harper opened the second day of talks by saying the summit must strike the proper balance between sustaining economic growth and pulling back fiscal deficits.

“Here is the tightrope we must walk,” Mr. Harper said. “To sustain the recovery, it is imperative that we follow through on existing stimulus plans. At the same time, advanced countries must send a clear message that as our stimulus plans expire, we will focus on getting our fiscal houses in order.”

Separately Sunday, German Chancellor Angela Merkel told reporters the summit leaders will agree to Mr. Harper’s call for countries to slash their budget deficits by half by 2013.

“This will be part of the final document,” she said. Continue reading and comment >>> Jeremy Torobin | Sunday, June 27, 2010