G20 seeks growth, but there is no consensus.
G20 finance leaders remain committed to pursuing higher global growth, but are divided on how to achieve it, with Germany opposing calls from the United States and others for more immediate stimulus.
(Reuters)- G20 finance leaders remain committed to pursuing higher global growth, but are divided on how to achieve it, with Germany opposing calls from the United States and others for more immediate stimulus.
Opening a meeting of finance ministers and central bank governors from the world's major economies, Australian Treasurer Joe Hockey outlined an ambitious agenda on Saturday to boost global growth, make the global banking system fireproof, and close fiscal loopholes for large multinational corporations.
"We have the opportunity to change the fate of the global economy," said Hockey, who in February launched a campaign to add 2 percentage points to global growth in 2018 as part of Australia's G20 presidency.
U.S. Treasury Secretary Jack Lew urged the eurozone and Japan to do more to boost demand and revitalize activity, signaling that Germany has scope to do much more thanks to its growing trade surplus.
Berlin was not happy.
"We will not agree to short-sighted stimulus," said a German representative at the G20, arguing that in most countries the debt was still too high to allow for increased spending.
Germany has been under intense pressure to allow the eurozone to ease fiscal austerity measures to boost its economy through increased government spending or tax cuts.