Next Up Germany ? G20 Say's Yes !
Germany may come under pressure from the Group of 20 major economies to step up spending as the bloc looks to encourage stronger economies to return to stimulus mode in support of global growth, a G20 official in Asia told Reuters on Tuesday.
The official, speaking on condition of anonymity because he was not authorised to speak publicly on G20 discussions, stressed Germany’s responsibility as the economic engine of the troubled euro zone, but he also cited Canada as another nation with the “fiscal capability” to step up spending.
“Countries with sound fiscal positions will be encouraged to boost spending at the G20 level,” the official said. “As of now, Germany and Canada could be seen as those having fiscal capabilities among the advanced economies.”
Another source familiar with the G20′s behind-the-scenes talks said he was unaware of any plans for the grouping to convene an emergency conference call on the global financial and economic outlook.
The G7 is due to hold its own conference call later on Tuesday.
Leaders from the G20 economies are due to meet anyway for a June 18-19 summit in Mexico.
Germany, as the strongest member of the 17-nation euro zone, faces growing pressure from within and outside Europe to put growth ahead of fiscal austerity to help avoid a break-up of the single currency and another global financial crisis.
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