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G20 may press Germany for stimulus spending: source

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German Chancellor Angela Merkel (L) speaks with the President of the European Central Bank (ECB), Mario Draghi, before the start of a meeting on the second day of the G20 Summit in Cannes, France November 4, 2011. REUTERS/Chris Ratcliffe/pool

German Chancellor Angela Merkel (L) speaks with the President of the European Central Bank (ECB), Mario Draghi, before the start of a meeting on the second day of the G20 Summit in Cannes, France November 4, 2011.

Credit: Reuters/Chris Ratcliffe/pool

Mon Jun 4, 2012 10:56pm EDT

(Reuters) - Germany may come under pressure from the Group of 20 major economies to step up spending as the bloc looks to encourage stronger economies to return to stimulus mode in support of global growth, a G20 official in Asia told Reuters on Tuesday.

The official, speaking on condition of anonymity because he was not authorized to speak publicly on G20 discussions, stressed Germany's responsibility as the economic engine of the troubled euro zone, but he also cited Canada as another nation with the "fiscal capability" to step up spending.

"Countries with sound fiscal positions will be encouraged to boost spending at the G20 level," the official said.

"As of now, Germany and Canada could be seen as those having fiscal capabilities among the advanced economies."

Another source familiar with the G20's behind-the-scenes talks said he was unaware of any plans for the grouping to convene an emergency conference call on the global financial and economic outlook.

The G7 is due to hold its own conference call later on Tuesday.

Leaders from the G20 economies are due to meet anyway for a June 18-19 summit in Mexico.

Germany, as the strongest member of the 17-nation euro zone, faces growing pressure from within and outside Europe to put growth ahead of fiscal austerity to help avoid a break-up of the single currency and another global financial crisis.

(Reporting by Asia bureau; Editing by Ed Lane and Mark Bendeich)

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Comments (1)
psunami wrote:
ha hah ha…yes! spend more! world is gonna pop…ain’t nobody gonna stop!

Jun 04, 2012 10:28pm EDT  --  Report as abuse
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