G20 Leaders Head Home, Vowing to Cut Deficits

Economic powers set goals for reducing public debt
By Marie Morris,  Newser Staff
Posted Jun 27, 2010 5:06 PM CDT
G20 Leaders Head Home, Vowing to Cut Deficits
President Obama with other world leaders during the official "family photo" at the G20 Summit Sunday, June 27, 2010, in Toronto.   (AP Photo/Lefteris Pitarakis)

The leaders of the Group of 20 nations wrapped up their 2-day summit today in Toronto, striking an agreement to reduce deficits over the next 3 to 6 years without endangering the global economic rebound. The major economic powers vowed to cut their deficits in half by 2013 and "stabilize" debt by 2016 while saying the reductions would be "carefully calibrated to sustain the recovery," reports the Washington Post.

The dates are not formal deadlines, thanks in large part to pressure exerted by the US and other allies—including Japan, to which the timeline doesn't apply, the New York Times notes. The American delegation was in the minority cautioning about a double-dip recession. Said one expert: "Aiming for a gradually improving debt-to-GDP ratio by 2016 is hardly wild-eyed fiscal conservatism."
(More Group of 20 stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.