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G20 to warn of 'uneven and fragile' recovery: leaked text

by Staff Writers
Washington (AFP) June 23, 2010
Leaders from the group of 20 top economies will warn that the global recovery remains "uneven and fragile" when they meet in Toronto later this week, according to a leaked draft communique.

According to the document, obtained by Greenpeace -- an environmental lobby group -- leaders noted a still patchy recovery from the worst economic crisis in a generation.

"While growth is returning in many countries, the recovery is uneven and fragile, and unemployment remains at unacceptable levels," the text said.

Skirting a contentious issue that has divided Europe and the United States, leaders were to say stimulus spending had helped stabilize the global economy.

Washington has urged Europe not to cut government spending before the recovery is assured, for fear of plunging a swathe of the world -- including the United States -- into a double-dip recession.

European nations, led by Germany, France and Britain, argue drastic cuts are needed to put their books in order and create a firm basis for future growth.

"Fiscal and monetary stimulus has helped restore private demand and lending, and we have taken strong steps toward increasing the stability of our financial systems," said the largely incomplete text.

Leaders were also expected to ask trade ministers to move toward the "endgame" of much-delayed World Trade Organization negotiations.

"We instruct our Trade Ministers to prepare a full assessment of the state of the negotiations and a plan of the way forward for our consideration at the Seoul G20 summit in November of this year."

They will also push forward with a "voluntary" plan to "identifying inefficient fossil fuel subsidies that encourage wasteful consumption.

"We agree to continue working to develop voluntary, member-specific approaches for the rationalization and phase out of such measures."



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POLITICAL ECONOMY
China's Hu heads to G20 amid pressure over yuan, N.Korea
Beijing (AFP) June 23, 2010
China's President Hu Jintao left Wednesday for the Group of 20 summit in Canada where he could face new pressure over Beijing's currency controls and world efforts to rein in ally North Korea. Hu will pay a three-day state visit to Canada before attending the weekend G20 meeting in Toronto, accompanied by central bank head Zhou Xiaochuan, commerce minister Chen Deming and others, the foreign ... read more







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