Tuning discordant voices, a challenge for U.S., EU in Canada

08:42, June 28, 2010      

Email | Print | Subscribe | Comments | Forum 

At the G20 summit ongoing in Canada, the United States and European Union undoubtedly play overwhelming and critical roles in ushering the world to sustained growth and international financial reform.

However, as the two sides have brought different proposals to the decisive summit in Toronto, how to tune their discordant voices becomes a challenge, not only for the two, but also for the global economy.

DIFFERENT GROWTH STRATEGY

According to the information published by the host country Canada, sustainable and balanced economic growth is one major topic of the summit, but how to succeed a sound growth, the Europe and the America own different views.

So far since the beginning of this year when the eurozone hit by the sovereign debt crisis, Germany and France, two biggest EU economies, gradually formed a united front line of taking austerity measures and cutting public deficit to solidify fiscal budget.

Germany Chancellor Angela Merkel stressed that Europe needed a healthy growth built on authentic economic fundamentals rather than debt-based growth.

The U.S. President Barack Obama, nevertheless, made a different voice ahead of the summit, underlining the priority of G20 summit should be to guarantee and boost economic recovery.

Obama called European countries to avoid too aggressive measures in tightening fiscal spending, in fear that austerity methods might stem world-wide growth and drag the resilience.

Michel Aglietta, a prestigious French economist with the Paris University, attributed U.S. and European discord to conflict between Keynesia and Mercantilism, in an interview with local media.

Facing a fragile recovery, the U.S. leaders see more hope in Keynesia, which means to take active fiscal stimulus to boost domestic demand in a bid to promote growth. They viewed tight fiscal policy not appropriate under the current weak rebound.

With an aging demography, Germany takes weak domestic demand as bigger threat, and thus preferred Mercantilism to edge its competitiveness and accumulate trade surplus.

The two opposite methods would amplify the international economic imbalance, Aglitta expressed his concerns.

NUANCE IN GLOBAL FINANCIAL REGULATION

In terms of international financial regulation, the United States and EU appeared in accordance, but there still existed nuance in regulating formats, particularly on global financial transaction levy.

France and Germany stand to levy financial transaction on international level, eyeing to form an assistance fund to offset potential bailout cost in the future, and to restrain banking groups from risky operations.
【1】 【2】

(Editor:李牧(实习))

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
  • A visitor passes by in the exhibition of Istanbul design week on Sept. 28, 2011 in Istanbul, Turkey. Istanbul design week will be hosting designers and design exhibitions from around the world in Istanbul from Sept 28 to Oct 2 with the participation of 25 countries. (Xinhua/Ma yan)
  • Red flag flies at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 28, 2011. A spokesperson with China's manned space program said Wednesday that fuel has been injected into the Long March-2FT1 carrier rocket in preparation for launching the Tiangong-1 space module Thursday evening as planned. (Xinhua/Wang Jianmin)
  • A militant loyal to the Libyan National Transitional Council (NTC) waves in a tank near Bani Walid, one of the pro-Muammar Gaddafi strongholds, on Sept. 28, 2011. (Xinhua/Hamza Turkia)
  • Jewish worshippers pray at the Western Wall, Judaism's holiest prayer site, in Jerusalem's Old City on Sept. 28, 2011, ahead of Rosh Hashanah, the two-day Jewish new year which will begin at sunset on Sept. 28 and conclude at nightfall on Sept. 30. (Xinhua/Muammar Awad)
  • High school student Johanna Choapa is helped by her father after announcing the end of hunger strike in Santiago, capital of Chile, on Sept. 28, 2011. The end of the strike took place to make way for a dialogue with the government, seeking to resolve the four-month crisis in the education sector. (Xinhua/Jorge Villegas)
Hot Forum Discussion