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Crunch time for G7

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Crunch time for G7

R
Reuters

14 Views • Sep 10, 2011

Description

France's ancient city of Marseille seems the perfect setting for people without a care in the world.
But for those at this weekend's meeting of the G7 it is the backdrop to a deeply gloomy global economic outlook with finance chiefs under heavy pressure to come up with solutions.
As delegates began to arrive for the talks, France called for a coordinated response from the Group of Seven Industrialised Nations.
In London the Managing Director of the International Monetary fund Christine Lagarde was meeting the UK's finance minister, George Osborne.
She said policymakers should use every means at hand to boost growth.
(SOUNDBITE) (English) MANAGING DIRECTOR OF INTERNATIONAL MONETARY FUND CHRISTINE LAGARDE SAYING:
"For the advanced economies, there is no question that fiscal sustainability must be restored through credible, credible consolidation plans, but we also know - and I have said it -- that consolidation, if it happens too quickly will hurt the recovery and worsen job prospects. So the challenge, yet again, the balance, is to actually find the right pace for adjustment, neither too fast, nor too slow."
Mr Osborne echoed her message as the UK's economy teeters on the edge of a double dip recession.
BRITISH FINANCE MINISTER GEORGE OSBORNE SAYING:
"Those countries with large budget deficits and significant fiscal vulnerabilities, including the United Kingdom -- with one of the largest budget deficits of all - must continue to set out and implement credible deficit reduction plans that will get debt, as a percentage of GDP, on to a declining path."
It's been decided that no communique will be issued - French Finance Minister Francois Baroin said this would promote more frank discussion.
Penny Tweedie, Reuters.