G7 begins Marseille talks on faltering world economy

9th September 2011, Comments 0 comments

Finance ministers from the world's richest states met in Marseille Friday to try and find ways to get the faltering world economy -- weakened by the US and European debt crises -- back on track.

Finance chiefs and central bank governors of the G7 group of industrialised nations -- Canada, the United States, Japan, Germany, Britain, France and Italy -- kicked off two days of talks in the southern French city.

They met a day after US President Barack Obama unveiled a $447 billion (322-billion-euro) jobs plan to energise the world's largest economy.

An Organisation for Economic Cooperation and Development report issued on the eve of the meeting said a new recession in some rich countries cannot be ruled out and the eurozone crisis could deepen.

International Monetary Fund chief Christine Lagarde, who also joined the ministers in Marseille, warned that there could be no foot-dragging.

"The key message I wish to convey today is that countries must act now -- and act boldly -- to steer their economies through this dangerous new phase of the recovery," Lagarde said in a speech in London before travelling to France.

France said this week it wanted the meeting to reach a "coordinated response" that would boost growth, create employment and help pay off debt.

Libya's new rulers have also been invited in a follow-up to the economic support for the so-called Arab Spring announced at a G7 meeting in May.

The fledgling administration will join Tunisia, Egypt, Morocco and Jordan as they explain how they plan to relaunch their economies and hear what help they can expect from the world's major powers.

© 2011 AFP

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