Tulsa World: St. Andrews, Scotland: G20 ministers: Let stimulus roll

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St. Andrews, Scotland: G20 ministers: Let stimulus roll

French Finance Minister Christine Lagarde (left) and U.S. Treasury Secretary Timothy Geithner (center) walk away after posing for a group picture during the G20 Finance Ministers meeting at St. Andrews, Scotland, on Saturday. Chris Clark / Associated Press

By JANE WARDELL Associated Press
Published: 11/8/2009 2:31 AM
Last Modified: 11/8/2009 5:42 AM

Finance officials from rich and developing countries pledged Saturday to maintain emergency support for their economies until recovery is assured, but they failed to reach a clear agreement to bear the cost of fighting climate change.

There was also a mixed reaction among the Group of 20 leading rich and emerging nations to a British-led push to consider a fund for bank bailouts, possibly financed by a tax on financial transactions, to ensure that taxpayers don't bear the brunt of any future rescues.

The grouping — representing around 90 percent of the world's wealth, 80 percent of world trade and two-thirds of the world's population — said in a statement after talks in St. Andrews, Scotland, that economic recovery is "uneven and remains dependent on policy support."

U.S. Treasury Secretary Timothy Geithner said U.S. jobs figures out Friday showing unemployment at a 26-year high of 10.2 percent "reinforced that this is still a very tough economic environment."

While the "process of growth is now beginning," that growth still needs to be reinforced to create jobs and get businesses investing to underpin the recovery in the housing market and elsewhere, Geithner said.

The statement smoothed over divisions among G20 nations about whether it was time to start talking about exit strategies to unwind recent stimulus measures. Germany, France and Russia have called for a joint plan on when countries should start repaying debt, and the European Central Bank has indicated it will soon start withdrawing some of its lending to banks.

On climate change, the G20 officials also said they wanted "an ambitious outcome" at a major U.N. conference in Copenhagen next month — but did not commit to a funding package to help poorer nations adapt to a warming climate.

Swedish Finance Minister Anders Borg, whose country holds the rotating European Union presidency, said no deal on financing would mean that "we will end up with a very difficult situation in Copenhagen."

German Finance Minister Wolfgang Schaeuble said an agreement was scuppered by emerging nations' unwillingness to contribute. He indirectly blamed their opposition to the failure of other rich nations — such as the U.S. — to stump up money.

Geithner made no promises Saturday, saying only that progress was being made and that discussions in Scotland showed "there is now an understanding of its place in business and economic impetus for us all." By JANE WARDELL Associated Press

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