G8 warns of signifcant risks to economy
The document cautions that “significant risks remain to economic and financial stability” while “exit strategies” from pro-growth packages should be unwound only “once recovery is assured”.
The leaders of the US, Germany, Japan, France, Britain, Italy, Canada and Russia met in L’Aquila, a mountain town wrecked by April’s earthquake. The meeting started with a debate about the economic crisis, and is expected to shift focus to climate change.
But Chinese President Hu Jintao was forced to return home due to riots in northwestern China in which 156 people have died. Before he left, summit host Silvio Berlusconi spoke of Chinese “resistance” on climate goals.
“There is agreement (among G8 countries) but China is still sceptical,” Berlusconi said at the start of afternoon talks. However the draft document did not mention the previous G8 pledge to halve greenhouse gas emissions by 2050.