[ad_1]
Joe Biden has won support at the G7 summit for a plan to “continue spending” as Western leaders rejected austerity in a postcovid world and pledged to fight inequality both at home and abroad .
Biden’s call for continued economic stimulus was supported by other fellow leaders in the summit in Cornwall in the south-west of England, in a concentration framed by the leaders at the moment when the west begins a struggle against an ascending China.
The US president opened the first session of the summit in Carbis Bay and, according to a witness, was supported by all G7 leaders while calling on the West to “know the time and support the economy “.
Mario Draghi, Italian prime minister and former head of the European Central Bank, followed Biden and said: “There is a compelling case for expansive fiscal policy.”
Draghi argued that it was right to spend it now, even if Western countries had to commit to long-term fiscal prudence to reassure markets and make sure central bankers were not afraid and raised rates excessively. of interest.
In a statement summing up the apparent conversion of the West to social democracy, summit host Boris Johnson said it was vital that the pandemic did not cause a “lasting scar” of inequality.
Opening the summit, He said: “It is vital that we do not repeat the mistakes of the last great crisis, the last great economic recession of 2008, when the recovery was not uniform across all parts of society.”
The British Conservative Prime Minister has previously described the austerity policies adopted by the government of David Cameron, his predecessor, as “a mistake”.
Johnson also said the recovery should be built with the environment in mind and “in a more feminine and gender-neutral way.”
While G7 commitments are not binding, the West’s appetite for fiscal expansion sets the stage for some awkward discussions this fall between Johnson and his fiscally conservative Chancellor Rishi Sunak.
G7 countries will use the summit to commit to higher spending to help developing countries, with a clear message that the West offers an alternative to the support Beijing offers.
The leaders agreed to supply 1 billion doses of vaccine to the poorest countries, which responds to China’s “vaccine diplomacy.” The United States has claimed that Beijing offers its medical aid with “tied ropes.”
The G7 will use weekend meetings to discuss a plan to help poor countries cope with climate change, a capital investment program designed by some British officials as a counterweight to Belt and road of China global infrastructure program.
In the meantime, the summit will endorse plans for one new system for taxing larger multinational companies, although there is still a dispute over which companies should go through its reach.
Biden does not want an excessive burden on American technology companies, while Britain does struggling to exclude the big banks. “The U.S. does not see a conceptual basis for the exclusion of financial services,” a U.S. Treasury official said.
After four years of Donald Trump’s presidency, when the G7 became a sad forum for division and resentment, the mood on the Cornish coast was decidedly optimistic at the start of the three days.
French President Emmanuel Macron threw his arm around Biden – on his first trip abroad as U.S. president – to Carbis Bay beach and argued about the need for democracies to work for “the middle classes “.
Meanwhile, Canadian Justin Trudeau, who had previously warned that austerity programs had contributed to the rise of populism, was among those bathing in the sea.
On Friday evening, G7 leaders and partners traveled to the Eden Project, a future environmental park, to meet Queen Elizabeth and other members of the royal family. A barbecue on the beach is planned for Saturday.
The summit continues on Saturday with a new discussion on the economy, foreign policy and health; concludes Sunday at lunchtime after a debate on the fight against climate change.
[ad_2]
Source link
