UNITED KINGDOM: Finance ministers and central bank leaders from G20 countries meet to discuss a global solution to the worst economic crisis since the 1930s

Record ID: 862268

  • Title: UNITED KINGDOM: Finance ministers and central bank leaders from G20 countries meet to discuss a global solution to the worst economic crisis since the 1930s
  • Date: 14th March 2009
  • Summary: HORSHAM, ENGLAND, UK (MARCH 13, 2009) (REUTERS) (*** FLASH PHOTOGRAPHY ***) VARIOUS OF FINANCE MINISTERS AND CENTRAL BANK LEADERS FROM G20 COUNTRIES ARRIVING FOR DINNER
  • Embargoed: 29th March 2009 13:00
  • Keywords:
  • Location: United Kingdom
  • City:
  • Country: United Kingdom
  • Topics: Economic News
  • Reuters ID: LVA9FZHD4ITZ0EGWOA6IRV0YAN8
  • Aspect Ratio:
  • Story Text: G20 finance ministers and central bankers met in southern England on Friday (March 13) under growing pressure to resolve their differences and show progress on the road to a broader summit of world leaders in London on April 2.
    The World Bank on Friday warned that more government spending will give the world economy no more than a "sugar high" if banks are not stabilised, as financial policymakers at their G20 meeting bickered over ways to battle the crisis.
    That struck at the heart of a rift between Washington, which is pushing for governments to spend more, and European capitals, which want the response to the crisis to now focus on rapid moves on regulation in addition to doling out public cash.
    Despite the bickering, some progress is being made: the leaders are expected to back a call this week to double International Monetary Fund resources to help emerging economies hit by a collapse in global demand for their exports and the severing of credit lines.
    The meeting is also tasked with making good on pledges made in November on issues ranging from tax havens to banking regulation and how countries deal with the toxic assets at the heart of the crisis.
    The world economy shrank for the first time since 1945 in the last quarter of 2008, throwing millions of people out of work, and the IMF says 2009 will bring the first annual global contraction for more than 60 years.
    Yet the resources invested by states in the crisis are already huge and French President Nicolas Sarkozy openly rebuffed U.S. calls to spend more at a news conference with German Chancellor Angela Merkel in Berlin on Thursday.
    A Russian delegation will also oppose British proposals for G20 members to set a mandatory minimum fiscal stimulus level at 2 percent of GDP and cut interest rates, a Russian delegation source said.
    China's Premier Wen Jiabao sought to reassure the world on Friday that China would deliver on a promise of 8 percent growth in 2009 despite a collapse in Western demand for Asian goods, and could deploy extra stimulus spending if needed to get there.
    Beijing has already unveiled a 4 trillion yuan (USD 585 billion) plan to expand and speed up government spending.
    The G20 represents more than 80 percent of the global economy, comprising the Group of Seven industrial nations -- all of which are in or near recession -- and key emerging markets such as Russia, China, India and Brazil.
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