Global economy top of agenda at G8 summit

Global economy top of summit agenda

EUROPE is mired in debt and recession. Financial markets have hit violent ups and downs on fears that US stimulus efforts may soon be scaled back. Japan is finally looking up after years of stagnation – but it remains an open question if the recovery will stick. That is the global economy that confronted the heads of the Group of Eight leading economies as they gathered for their annual summit in Northern Ireland. The summit started yesterday and will continue today.

British Prime Minister David Cameron will serve as summit host for US President Barack Obama and the leaders of Germany, Italy, Canada, France, Japan and Russia. On the agenda will be: new cooperation to fight tax evasion and increase transparency among governments; how much help to give to rebels in Syria; and a push for lower trade barriers between the US and the European Union.

On the sidelines it is expected that the discussions will broaden to include the election results in Iran and data protection, following revelations about a US counter-terror surveillance programme.

As always, the summit takes place under heavy security, guarded by 8 000 police. The venue is surrounded by extensive security fences, and on three sides by water. There’s only one access road to the closest town, Enniskillen, some 8km away.

Since last year’s G8 meeting at Camp David in the US, there has been a modest economic upswing throughout the developed world and prospects are brighter after five years of turbulence and recession. Yet, despite progress, the economic outlook remains fraught with uncertainties.

Chief among the question marks: when will the US Federal Reserve begin to curtail its extraordinary stimulus, which has supported the recovery in the US and helped send markets around the world to new peaks?

Global stock and bond markets have whipsawed since May 23, when US Fed chairman Ben Bernanke said the US central bank might slow its drive to keep long-term borrowing costs low in the next few months. – Sapa-AFP

Picture: REUTERS HELP THE HUNGRY: Campaigners wearing giant heads resembling the G8 leaders arrive on a replica Viking longboat during a protest near the G8 summit’s media centre in Enniskillen, Northern Ireland. They were calling for action to eliminate the causes of...