Prime Minister David Cameron signed his name to a letter also signed by the leaders of Australia, Canada, Indonesia, Mexico and South Korea. The letter warns that recovery will be “difficult”, while there is “limited room for manoeuvre”. The G20 leaders insist an agreement must be reached at the G20’s November summit.
The problem is the letter, not signed by the US or any eurozone state, urges swift action from Washington to put public finances on a sustainable path.
“For the US and many advanced economies the path out of the deep and prolonged recession will be difficult,” warns the letter. “This will impact on growth in emerging markets, and there is more limited room for manoeuvre than in 2009”.