G-20 to tackle finances, climate

Officials meeting at resort in Scotland seek blueprint to aid future global growth

Published: Friday, Nov. 6, 2009 10:56 p.m. MST
 |  E-MAIL | PRINT | FONT + - 

ST. ANDREWS, Scotland — The world's top financial officials on Friday sought a blueprint for securing future global growth and worked to break a deadlock over who bears the cost of fighting climate change.

Even as the world emerges hesitantly from recession, finance ministers and central bankers from the Group of 20 leading rich and developing countries meeting in Scotland are likely to agree that it is too early to pull the plug on economic stimulus measures.

While Britain remains officially in recession, the United States, Germany, and Japan have all recorded renewed growth and the 16-country euro zone is expected to do the same when figures are released next week.

British Treasury chief Alistair Darling, the host of the gathering, urged the group to maintain the collective approach forged in more dire circumstances at summits in London in April and in Pittsburgh in September, arguing that sustainable growth would only come from agreed action to increase trade and boost productivity.

Story continues below

Some countries are more eager to begin sketching out exit strategies to unwind the recent massive government spending, low interest rates and expansion of the money supply that are supporting the world economy. And the European Central Bank broadly hinted Thursday that it will soon begin cutting back some of its emergency lending to banks, ramped up during the finance crisis.

There are also disagreements on banking reform, with Canadian Finance Minister Jim Flaherty acknowledging on the eve of the meeting that there were "disparate views" on how to address the problem of banks being too big to fail. Britain is forcing major bailed-out banks to sell part of their business, while the U.S. has shied away from calls to break up major banks. Meanwhile, a French official said his country is worried that the momentum behind tightening rules on bonuses is flagging.

"There can be no room for complacency amongst G-20 countries this weekend," Darling said in a speech in Edinburgh on his way to chair the grouping that represents around 90 percent of the world's wealth, 80 percent of world trade, and two-thirds of the world's population.

Darling acknowledged that plans for recovery must eventually be coordinated, but said "as we draw up our plans, we must accept that the biggest risk to recovery would be to exit before the recovery is real."

The other key item on the agenda for the officials — holed up away from the blustering Scottish winds in a seaside golf resort — is tackling the financial cost of climate change.

Comments

You can be the first to comment on this story.

Image
Martin Cleaver, Associated Press

World Bank President Robert Zoellick of the U.S. ends a run in the rain in St. Andrews, Scotland.

previousnext

Latest comments

Letters: Palin on the fringe?

With her appearance on Trump's upcoming 3rd edition of Celebrity Apprentice,...

Letters: Hatch's side is evil

Or he really is the poster boy for Utah's brand of "Christian".

Uncontrolled business can cost billions. Is it progress to allow the road...

Reagan much-beloved in Utah

In college, I was a big Reagan fan, and perhaps he was needed for America to...

Letters: Health-care options

And you just listen to Orrin Hatch when he tells you what to do!

Letters: Palin on the fringe?

Sarah Palin will NEVER be President. Utahns may vote for her in droves, but...

Palin's book shows she's unqualified

Palin has not been trashed yet nearly as much as the last 2 democratic...

Oh come on--- Most of those events you lay at religion's feet is really...

Real Champions

Salt Lake has a professional soccer team? I know my daughter lost her soccer...

Palin's book shows she's unqualified

Palin just published a book, went on Oprah and can say whatever she wants on...

Advertisements