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G-7 seeks to calm global markets, sustain rebound

06 February 2010 22:44 (UTC +04:00)

Baku â€“ APA. Top finance officials of the world’s seven major industrial countries pledged Saturday to work to calm global markets and maintain government stimulus to sustain an economic rebound, APA reports citing â€œAssociated Pressâ€.

Speaking for the group, Canadian Finance Minister Jim Flaherty said leaders of the Group of Seven countries also discussed strategies they will use to withdraw stimulus once the recovery strengthens.

But Flaherty and other leaders did not indicate they were planning to propose any further stimulus beyond what they have already unveiled. They said they would push ahead with those efforts this year.

Flaherty spoke as the G-7 officials ended a two-day meeting in the Canadian Arctic. They met as financial markets were roiled this week over fears that a European debt crisis could derail the global recovery.

Flaherty said the leaders discussed the debt crisis in Greece. Treasury Secretary Timothy Geithner said European officials "gave us a very comprehensive review" of the situation there, which rattled markets this past week.

Heading into the meetings, some G-7 nations had expressed unhappiness about President Barack Obama’s surprise announcement last month that the United States would seek tougher rules to prevent risky actions by big banks from toppling the entire financial system.

Obama presented a budget plan this past week that would boost job-creation efforts and raise the U.S. budget deficit to a record $1.56 trillion this year. British Prime Minister Gordon Brown is also stressing government stimulus. Critics point out that the country’s budget deficit as a share of its gross domestic product could reach 12 percent this year.

In Japan, where the economy has struggled for two decades, the government unveiled more stimulus spending last week.