International   

G7 vows to avoid protectionism

Paris: Finance Ministers from the world’s seven richest nations meeting in Rome over the weekend renewed calls for a concerted global response to the financial and economic crisis facing the world even as their discussions were shadowed by the sceptre of protectionism coupled with deepening recession.

The Group of Seven Ministers pledged on Saturday to avoid resorting to protectionism as they try to stimulate their economies in the face of the world’s worst economic crisis since the 1930s.

The Ministers, representing France, Germany, Italy, Britain, Canada, the U.S. and Japan met to draw up proposals for the international conference of the world’s wealthy and emerging nations, the G20, which is to take place in London in early April.

Statistics show that the downturn is much more severe than previously believed and European economies have been bedevilled by successive announcements of severe job cuts in Germany, France, Italy, Spain, Portugal. No part of Europe, it appears, has been spared.

The German economy, Europe’s largest, plunged by 2.1 per cent in the fourth quarter compared to the previous quarter in the sharpest downturn since the country reunified in 1990, and Italy and France also reported sharp downturns of 1.8 per cent and 1.2 per cent respectively.

British Chancellor of the Exchequer Alistair Darling was blunt, calling the troubles “the severest downturn in generations.”

The meeting in Rome took place with the backdrop of massive protest by Italian workers against the Berlusconi government’s handling of the crisis.

Protectionism emerged as a major worry at the meeting amid fears that the crisis would lead countries to close off their borders to free trade, in a repeat of the 1930s. Already French President Nicolas Sarkozy has been accused by Slovenia and the Czech Republic of protectionist measures with his €6-billion bailout package to the automobile industry which is conditional to retaining jobs in France.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

“Prabakaran still holed up in Wanni”
Venezuela votes on presidential term limits
G7 vows to avoid protectionism
Hamas, Fatah hold unity talks
U.S. Army wants Hindi, Tamil speakers
Miss India Worldwide 2009
Sidhartha’s death stuns near and dear

Copyright © 2009, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu