G20 Focus on Growth over Austerity

(Moscow) – The group of finance and labour leaders and bank governors from 20 major and emerging economies had been meeting in Moscow to map out the future fiscal plan. Hosts Russia said G20 policymakers had soft-pedalled on goals to cut government debt in favour of a focus on growth and how to exit central bank stimulus with a minimum of turmoil. “(G20) colleagues have not made the decision to take responsibility to lower the deficits and debts by 2016,” Finance Minister Anton Siluanov said.
Delegates pledged to make the shift from austerity cuts to growth and job market stimulation as carefully as possible to avoid derailing volatile financial markets. “We do not see any revival of growth in Europe yet, and Japan – we’re keeping our fingers crossed,” said Indian Finance Minister Chidambaram Palaniappan.
Escalating youth unemployment rates, which are approaching 60 percent in weaker eurozone economies such as Greece and Spain, means key G20 members, including the United States, made clear ahead of the meeting that the fight against unemployment should be at the centre of the agenda. Other states, like Germany, are known for wanting to keep a strict eye on fiscal discipline. A final draft of the meeting’s agreement obtained said an action plan to boost jobs and growth, while rebalancing global demand and debt, would be readied for a G20 leaders summit in September.