• G-8 Leaders See Signs of Economic Stabilization and Improved Confidence
  • July 16, 2009 | Author: Darren M. Cooper
  • Law Firm: Alston & Bird LLP - Washington Office
  • On Friday, as the 2009 G8 Summit held in the city of L'Aquila, Italy, came to a close, the leaders of the G8 countries discussed the state of the world economy and the extraordinary measures taken thus far, noting "signs of stabilization and improved confidence," and "reaffirm[ed] their commitment to implementing the decisions made at the Washington and London Summits."   The G-8 Finance Ministers in their Communiqué, promised to:

    • Implement actions to reduce the impact of the economic crisis on employment by "promoting targeted active labor market policies, enhancing skills development, ensuring effective social protection systems and enabling labor markets to respond to broader structural changes";
    • Continue to "provide macroeconomic stimulus consistent with price stability and medium-term fiscal sustainability," address "liquidity and capital needs of banks" and "restore lending;"
    • Prepare "exit strategies” to "unwind[ing] the extraordinary policy measures" taken to respond to the economic crisis;
    • Develop the Lecce Framework - a set of common principles and standards governing the conduct of international business and finance - which builds on existing initiatives and lays the foundation for a stable growth path over the long term;
    • Continue to honor the "commitment to refrain from protectionism"
    • "Remain committed to reforming the IMF to enable it to carry out its critical role in the modern global economy."

    Although the Finance Ministers are preparing "exit strategies," the G-8 leaders promised that policy action to support the world economy and repair the financial system "will continue as long as needed to ensure sustainable and long-lasting growth."