Britain denies Europe-US split ahead of summits

25th June 2010, Comments 0 comments

Britain denied Friday there was any split between the United States and Europe over how to keep the world on the path to economic recovery, ahead of two key summits in Canada.

US President Barack Obama is "very clear that we need to be putting the global economy on a sustainable path to recovery and I think it's something we would agree with him completely on," a spokesman for British Prime Minister David Cameron insisted.

He added the US leaders "recognize that in countries such as ours with particular deficit problems that there's a case for accelerating the rate of fiscal consolidation and I think that will be something that the G20 will recognize too."

Britain's new government this week announced the biggest cuts in decades in an emergency budget aiming to cut its record deficit of 154.7 billion pounds (188 billion euros, 230 billion dollars) in the 2009-10 financial year.

"I think it's perfectly consistent to have a strong position on fiscal policy and the need for consolidation and being pro-growth," Cameron's spokesman added.

But the US has voiced concern about how fast European nations, especially Germany, are cutting spending put in place to boost economies after the global financial crisis amid recent fears over eurozone debt.

Before leaving for Toronto, Obama said he hoped to build on "progress by coordinating our efforts to promote economic growth, to pursue financial reform, and to strengthen the global economy."

"We need to act in concert for a simple reason: This crisis proved, and events continue to affirm, that our national economies are inextricably linked."

The G8 summit starts Friday in Huntsville, north of Toronto, and the G20, which includes leaders of emerging as well as richest economies, follows on Saturday in Toronto.

© 2010 AFP

0 Comments To This Article