By Nick Mann | 21 May 2012
The Group of Eight leading economies have said they are committed to keeping Greece in the eurozone and to promoting growth and job creation worldwide.
The Group of Eight leading economies have said they are committed to keeping Greece in the eurozone and to promoting growth and job creation worldwide.
In a communiqué issued after two days of talks at Camp David, near Washington DC, the G8 leaders said: ‘We agree on the importance of a strong and cohesive eurozone for global stability and recovery, and we affirm our interest in Greece remaining in the eurozone while respecting its commitments.’
They added: ‘We support euro area leaders’ resolve to address the strains in the eurozone in a credible and timely manner and in a manner that fosters confidence, stability and growth.’
The communiqué also included a commitment to take measures to boost confidence and economic recovery by raising productivity, growth and demand, but in a ‘sustainable, credible’ way that does not increase inflation.
‘We commit to fiscal responsibility and, in this context, we support sound and sustainable fiscal consolidation policies that take into account countries’ evolving economic conditions and underpin confidence and economic recovery,’ the statement said.
US president Barack Obama, who chaired the weekend’s meeting, said recent improvements in the US economy showed that it was possible for European countries to bring down deficits and debt and reform the financial sector at the same time as creating growth and jobs.
He acknowledged that the eurozone situation was more complicated than that facing the US, but said ‘the direction the debate has taken recently should give us confidence’.
Obama added: ‘Europe has taken significant steps to manage the crisis. Individual countries and the European Union as a whole have engaged in significant reforms that will increase the prospects of long-term growth.
‘And there’s now an emerging consensus that more must be done to promote growth and job creation right now in the context of these fiscal and structural reforms. That consensus for progress was strengthened here at Camp David. ‘
In a separate joint statement issued after the meeting, European Commission president José Manuel Barroso and European Council president Herman Van Rompuy said there was agreement that growth-boosting measures and efforts to put public finances on a sounder footing went hand-in-hand. ‘Opposing the two is a false debate,’ they added.
European leaders are now set to hold an informal meeting in Brussels on Wednesday to discuss the way forward in the eurozone. Newly elected French president François Hollande is expected to present a package of proposals to reinvigorate the European economy, including plans for eurobonds.
