G-20 draft doesn’t include global spending commitments
The leaders of the world’s largest economies will say they are united behind efforts to boost growth and job creation as they attempt to repair a global economy roiled by fears over the European financial crisis, according to a draft of the statement to be released later today at the end of the Group of 20 annual meeting. The proposed declaration, however, stops short of committing the nations to greater spending unless conditions worsen. The draft, which could still be modified, urges fiscal responsibility while looking to education, innovation and infrastructure investment to spur economies. It’s far from certain, however, that the reassuring words will soothe markets, whose harsh judgment of the official response to the crisis appears to be pushing Europe closer to catastrophe by the day. The draft statement by the G-20 leaders, gathered in Mexico, includes language that appears aimed at easing the Spanish crisis. It also singles out China and Saudi Arabia for commitments to global economic well-being, lauding a Saudi pledge to keep oil prices from going too high by amping up production from its massive reserves. It praises China for a promise to move away from policies that keep its currency artificially low, which has given Chinese exports a price advantage on world markets.