G7 leaders agreed to keep stimulus flowing for their economies By Reuters


© Reuters. British Prime Minister Boris Johnson, U.S. President Joe Biden, Canadian Prime Minister Justin Trudeau, Italian Prime Minister Mario Draghi, President of the European Commission Ursula von der Leyen, President of the European Council Charles Michel, Japan

CARBIS BAY, England (Reuters) – Leaders of the Group of Seven rich nations were in broad agreement about the need to continue supporting their economies with fiscal stimulus, a source familiar with the discussions said on Friday, the opening day of a G7 summit.

The backing for more stimulus was shared by all leaders including Angela Merkel of Germany which has traditionally opposed heavy borrowing to spur growth, a position which it has relaxed in the face of the COVID-19 crisis.

The administration of U.S. President Joe Biden has been pushing its allies to keep on spending with Treasury Secretary Janet Yellen urging her G7 colleagues in February to “go big”.

The source said the G7 leaders believed there should be long-term policies for ensuring the health of the public finances in the future, echoing the position of their finance ministers who met earlier this month in London.

The leaders believed a post-lockdown rise in inflation in many countries would prove temporary, the source said.

Italian Prime Minister Mario Draghi stressed the importance of taking action to reduce unemployment such as retraining and offering support for younger workers, a proposal supported by Canada’s Justin Trudeau, the source said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.