G20 ‘Critical’ for Economy

If the government wants to avoid an economic crisis as bad as the one in the 1930’s downfall the upcoming G20 summit will be crucial.

Douglas Alexander, cabinet minister, has warned that the meeting that is due to take place next month is an “important moment”.

Finance ministers met on Saturday, and promised to make a serious effort to beat the current recession.

However, the best way to proceed is a matter for debate.

Finance ministers want to continue with the economic stimulus packages and low interest rates as well as increasing IMF funding.

They are also playing down the idea that a rift stands between the US, EU and UK on methods that can be used to help sort the financial problem.

Response Will Vary Between Countries

Mr Alexander said: “We had an agreement from everybody around the table to do all that is necessary for as long as is necessary and that sends an important signal to markets.

“There was a recognition with 20 countries around the room that the fiscal response is going to vary from country to country,” he added.

The basic outline of the agreement will help provide the basis for more concrete pledges that will be brought up at next month’s G20 meeting, which will take place in London.

Mr Douglas also said that: “A meeting in London 1931, the world came together and failed to reach agreement on the way to deal with the recession at that time and we all know the consequences.

“We do have a heavy responsibility to stop protectionism taking hold.”

When the idea that sides were being formed due to a division between the US and some European countries, was mentioned however, Mr Alexander denied all claims. He said: “I don’t know where this notion has emerged that somehow there are sides developing with respect to the G20, there are no sides.”

What Do You Think?

Is the government going about fixing the economic crisis in the right way? Will G20 help as much as they are suggesting? Leave your opinions here.