ENNISKILLEN, Northern Ireland, June 18 Following
is the section of a communique agreed by the leaders of the G8
powers at a two-day summit on the global economy.
-- Promoting growth and jobs is our top priority. We agreed
to nurture the global recovery by supporting demand, securing
our public finances and exploiting all sources of growth. The
fight against unemployment, particularly long-term and youth
unemployment, remains critical in our domestic and collective
-- Global economic prospects remain weak, though downside
risks have reduced thanks in part to significant policy actions
taken in the US, euro area and Japan, and to the resilience of
major developing and emerging market economies. Most financial
markets have seen marked gains as a result. However, this
optimism is yet to be translated fully into broader improvements
in economic activity and employment in most advanced economies.
In fact, prospects for growth in some regions have weakened
since the Camp David summit. While countries have taken steps to
avoid the worst of the tail risks that faced the world economy
in 2012, vulnerabilities remain in 2013, highlighting the need
for countries to press ahead with the necessary reforms to
restore sustainable growth and jobs.
-- Downside risks in the euro area have abated over the past
year, but it remains in recession. Additional strengthening of
the architecture of the European Economic and Monetary Union,
including through the development of the agreed elements of a
banking union, is strongly needed to contribute to further
reducing financial fragmentation, and continued strengthening of
banks' balance sheets. Fiscal sustainability and restoring
financial stability need to go hand in hand with well-designed
growth strategies, including growth-oriented structural reforms.
The US recovery is continuing and the deficit is declining
rapidly in the context of a continuing need for further progress
towards balanced medium-term fiscal sustainability and targeted
investments to enhance growth. Japan's growth will be supported
by its near-term fiscal stimulus, bold monetary policy and
recently announced strategy for promoting private investment.
However, it will need to address the challenge of defining a
credible medium-term fiscal plan. Some of our central banks have
continued to use highly accommodative monetary policy to support
their domestic economies, including through unconventional means
such as quantitative easing. Russia is experiencing low
unemployment and a favourable fiscal position, but more moderate
global growth and volatile commodity prices will be a challenge.
-- In light of this background we are committed to taking
further action now to restore confidence, encourage investment
and job creation, support the recovery and reduce global
imbalances. We agreed today that:
. Decisive action is needed to nurture a sustainable
recovery and restore the resilience of the global economy.
Advanced economies need to balance supporting domestic demand
with reforms to tackle structural weaknesses that weigh on
growth, while implementing credible fiscal plans. We reaffirm
our commitment to cooperate to achieve a lasting reduction in
global imbalances, which surplus and deficit countries must
. Monetary policy should continue to support the recovery
and be directed towards domestic price stability, according to
the respective mandates of central banks.
. Restoring medium-term fiscal sustainability remains a
priority. Fiscal policy should allow for near-term flexibility
to accommodate economic conditions including through focusing on
the structural deficit as appropriate. The pace of fiscal
consolidation should be differentiated for our different
national economic circumstances.
. Structural reforms are key to improving sustainable growth
and long-term living standards, enhancing competitiveness,
providing well-functioning credit channels for investment
including by small and medium sized enterprises (SMEs) and
strengthening confidence. Urgent and specific measures are
needed to create quality jobs, particularly for the young and
the long-term unemployed. We are all committed to make the
necessary reforms in our own economies to support stronger
financial systems, healthy labour markets, jobs and growth, and
bolster world trade.