Brussels, 23/06/2010 (Agence Europe) - In the run-up to the G8 and G20 Summits, the EU has again set out its intentions. In a letter sent on Tuesday 22 June to their G20 colleagues, President of the European Council Herman Van Rompuy and European Commission President José Manuel Barroso summarise the EU position on the various issues as agreed in the conclusions of the last European Council (see, inter alia, EUROPE 10162).
The G8 will meet on Friday 25 June in Huntsville, in the region of Muskoka, north of Toronto, with the G20 meeting in Toronto itself on 26-27 June. Over lunch on Friday, the G8 will discuss the global economic situation and a number of matters related to development, with Canada, which will chair the meetings, hoping that leaders approve initiatives that will help realise the Millennium Development Goals. This point will be discussed in the afternoon with the African countries (including Algeria, Egypt, Ethiopia, Nigeria, Senegal and South Africa). At dinner, the G8 will discuss global governance and the place of the emerging economies. The following day, talks will turn to security, with Iran, North Korea and the Middle East. On the evening of 26 June, the G20 will gather in Toronto, with one main subject on the agenda: the global economy and recovery strategies. On Sunday 27, the working session will concentrate on global imbalances and international financial institutions (an item which come up again in Seoul in November). Lunch will be devoted to discussion of how to tackle climate change.
“Securing strong and sustainable growth remains our priority,” say Van Rompuy and Barroso in their letter, highlighting the major risks that late exit from extraordinary fiscal stimulus would entail for the sustainability of public accounts. In line with the objectives set by the last European Council, the two say that the G20 should agree on “a coordinated and differentiated exit strategy to ensure sustainable public finances”. While acknowledging that “the timing, sequencing and scope of exit measures have to be tailored to conditions prevailing in the individual G20 members”, they call for substantial budgetary consolidation starting in 2011 at the latest. Europe, they say once again, is determined to reach its budgetary targets “without delay” and member states will, if necessary, take additional measures to accelerate the consolidation of public finances.
Financial markets must be reformed “in a consistent and coordinated manner” and the EU has agreed that systems of levies or taxes on financial institutions on financial institutions to ensure fair burden sharing. Despite the reticence of several G20 partners on this issue, international work on this matter should continue, to maintain a world-wide level playing field. The introduction of a global financial transaction tax should also be explored and developed further in that context, Van Rompuy and Barroso say. (A.B./transl.rt)