WASHINGTON (AP) – World finance leaders say they are determined to attack a sluggish global economy in which growth is too weak and unemployment too high. Their problem is arriving at a consensus over the proper mix of policies.
Finance ministers and central bank presidents from the world’s biggest economies issued a joint statement Friday that papered over stark differences between opposing views. The United States and other countries are pushing for less budget austerity and more government stimulus while Germany and others contend that attacking huge budget deficits should be job No. 1.
The discussions wrapped up Saturday with meetings of the steering committees of the 188-nation International Monetary Fund and its sister lending agency, the World Bank.
The G-20 joint statement revealed no major new policy initiatives and sought to straddle the divide in the growth-and- austerity argument.
The United States was represented at the talks by Treasury Secretary Jacob Lew and Federal Reserve Chairman Ben Bernanke.
“Strengthening global demand is imperative and must be at the top of our agenda,†Lew said in remarks late Friday before the IMF policy-setting group. “Stronger demand in Europe is critical to global growth.â€
However, other nations, led by Germany, have resisted a move away from austerity programs, saying it is critical to keep making progress in getting government deficits under control.
German Finance Minister Wolfgang Schaeuble apologized to a Washington audience for being late for a speech after the G-20 discussions Friday, saying, “On reduction of indebtedness ... we have a little bit of differences of opinion all over the world, to be very frank, and that’s the reason I am a little bit late.â€