G8 says world economy gaining strength, eyes debt

DEAUVILLE, France Fri May 27, 2011 3:37am EDT

General view of the room where G8 summit leaders meet for a working session at the G8 summit in Deauville May 26, 2011. REUTERS/Jewel Samad/Pool

General view of the room where G8 summit leaders meet for a working session at the G8 summit in Deauville May 26, 2011.

Credit: Reuters/Jewel Samad/Pool

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DEAUVILLE, France (Reuters) - The Group of Eight leaders agreed on Friday that the global economy recovery was becoming more "self-sustained," although higher commodity prices were hampering further growth.

In a communique to be issued at the end of a two-day summit in France, a copy of which was obtained by Reuters, European nations, the United States and Japan all agreed to ensure their public finances were sustainable.

"The global recovery is gaining strength and is becoming more self-sustained. However, downside risks remain, and internal and external imbalances are still a concern," the communique said.

"The sharp increase in commodity prices and their excessive volatility pose a significant headwind to the recovery. In this context, we agreed to remain focused on the action required to enhance the sustainability of public finances, to strengthen the recovery and foster employment, to reduce risks and ensure strong, sustainable and balanced growth, including through structural reforms.

"Europe has adopted a broad package of measures to deal with the sovereign debt crisis faced by a few countries, and it will continue to address the situation with determination and to pursue rigorous fiscal consolidation alongside structural reforms to support growth.

"The United States will put in place a clear and credible medium-term fiscal consolidation framework, consistent with considerations of job creation and economic growth.

"In Japan, while providing resources for the reconstruction after the disaster, the authorities will also address the issue of sustainability of public finances."

(Reporting by Luke Baker, editing by Alastair Macdonald)

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Comments (1)
fritzk wrote:
so, media, what ever happened to the g20?
and why the silence regarding Plutocracy and the new world order?
bad job.
truly.

May 27, 2011 8:22am EDT  --  Report as abuse
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