The leaders of the world's richest countries yesterday failed to agree a concerted strategy to boost the global economy, in the face of diverging views on the state of the recovery and what to do next.
In a gloomy prognosis, the G8 communiqué said: “We note some signs of stabilisation in our economies. However, the economic situation remains uncertain and significant risks remain to economic and financial stability.” Angela Merkel, German chancellor, wanted the G8 talks to focus on an “exit strategy” – plotting an unwinding of a massive fiscal and monetary stimulus – in a sign she is already thinking ahead to the recovery and rising borrowing and inflation.
Other leaders such as Gordon Brown, Britain's prime minister, argued that such talk was premature when the world still faced economic dangers, while Barack Obama, US president, kept open the prospect of a further stimulus.