Factbox: Developments in G8, G20 summits in Canada

Fri Jun 25, 2010 8:12pm EDT
 
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(Reuters) - Here are some developments as leaders of the Group of Eight advanced economies and Group of 20 advanced and emerging economies meet in Canada.

TOP DEVELOPMENTS

* The world's richest economies, loaded with debt after spending their way out of the financial crisis, papered over differences on how to clean up their finances with minimal damage to growth.

DEFICIT REDUCTION/STIMULUS TENSIONS

* The United States appeared at odds with Germany in the run-up to the summits. U.S. officials expressed concerns a nascent recovery from the global recession could be derailed by accelerating austerity in much of Western Europe.

German Chancellor Angela Merkel said, however, that the G8 talks had not produced any conflict over economic policy. G8 leaders have agreed on the need to stay focused on immediate growth goals while tackling public finances "going forward," a senior U.S. official said.

* British Prime Minister David Cameron downplayed the divisions between the United States and Europe on the issue, but said smoothing out imbalances between export-rich countries and debt-laden consumer economies would also require belt-tightening by Washington.

BANKING

* Obama said during G8 talks that bank capital was the "key" to strengthening the global financial system, a senior administration official said.   Continued...