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G20 leaders agree on a broad framework to tackle crisis

— Photo: AFP

Putting heads together: Dr. Montek Singh Ahluwalia with Bank of England Governor Mervyn Hughes (bottom left) and German Finance Minister Peer Steinbrueck (bottom right) in Horsham, West Sussex, on Saturday.

LONDON: The Finance Ministers and senior officials from G20 countries on Saturday claimed that they were united in their approach to tackling the deepening global economic crisis playing down reports of behind-the-scenes tensions.

At a meeting, chaired by Britain’s Chancellor of the Exchequer Alistair Darling, they agreed on a broad framework which will form the basis for more concrete measures expected to be announced at the London summit of G20 leaders on April 2.

Prime Minister Manmohan Singh will attend the summit. At Saturday’s meeting, India was represented by Deputy Chairman of the Planning Commission Montek Singh Ahluwalia.

A joint communiqué issued after the meeting, held in the picturesque West Sussex town of Horsham — about 60 km from London — committed the G20 countries to making “sustained effort” to revive the global economy.

“We are committed to deliver the scale of sustained effort necessary to restore growth,” it said even as reports suggested that there were deep divisions with a number of European countries opposed to the British and American stress on increased public spending to generate demand.

Speaking to the media, Mr. Darling claimed that there was a “great deal of consensus” at the meeting and a recognition of a “sense of urgency.”

He said there was no country in the world which did not recognise the seriousness of the crisis and the need to fight it jointly.

Mr. Darling warned that there were lessons to be learnt from the 1930’s depression which lasted much longer because the countries did not take a common stand.

Much of the discussion related to restoring confidence in the economy by recapitalising the banks, tightening up regulatory mechanisms and boosting public spending.

“Taken together this provides a clear sense of direction for the G20 London summit,” he said.

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G20 leaders agree on a broad framework to tackle crisis

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