Thursday, June 24, 2010

Europe spurns Obama's plea for more spending

Subject: txt intl mny econ bdd - sclm -
Obama has sought to use the upcoming meeting of the Group of 20 global finance ministers in Canada this weekend as a rallying cry for more fiscal stimulus. He argues that cutting government spending now risks undermining a fragile recovery in debt-soaked Western economies.

Since Obama issued his call to focus on growth, German Chancellor Angela Merkel called budget cuts "urgently necessary," and European Central Bank President Jean-Claude Trichet said stronger public finances are part of a "policy which we would call confidence-building."

In the most striking contrast, the United Kingdom on Tuesday unveiled a budget that will slash real spending in many government departments by 25% over four years...


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