G8 and G20 summits in Toronto
Germany’s chancellor has insisted that Europe’s leaders are making good progress in talks with the US about how to strengthen fragile economic growth. The twin summits, being held in and near Toronto, have come at a time when the world’s largest economies are divided over whether to pursue austerity measures to cut deficits, or continue public spending to stimulate economic growth. Canada spends $1.1bn (US$1.1bn; £730m) to host this week’s G8 and G20 summits, While a staggering 90% of the summits’ budget is for security
Angela Merkel told journalists at the G8 summit in Canada there was “mutual understanding” with President Barack Obama over deficit reduction plans. Mr Obama said that the G20 had made progress in its last two meetings in responding to “the worst financial crisis of our time”. And also he said,” I hope we can build on this progress by co-ordinating our efforts to promote economic growth, to pursue financial reform, and to strengthen the global economy.” Dominating the agenda are the global economic situation and banking reform. On Friday, after an initial meeting of the G8 – US, Canada, Germany, UK, France, Italy, Russia, Japan – Mrs Merkel said there was much common ground. “I have made it clear that we need sustainable growth and that growth and intelligent austerity measures don’t have to be contradictions,” Mrs Merkel told journalists. UK Prime Minister David Cameron denied that he was at odds with Mr Obama over the speed with which budget cuts should be made. Herman van Rompuy, the president of the European Council, has said that the EU’s key words this weekend would be “growth, confidence and medium term”. The G8 leaders will be joined later by China and other rising economic powers for the G20 summit.
“How can the prime minister preach austerity and restraint to Canadians and his G20 colleagues when he has lost control of the cost of his own summit?” said Opposition Liberal Party leader Michael Ignatieff. Most of the Canadians feel it’s an incredible waste of money. Why not have these meetings in the UN or come up with the same things using internet chatting?
