Govt Denies G20 £1.4 Trillion Stimulus Plans - 29 March 2009 - The real truth about politics
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Main » 2009 » March » 29 » Govt Denies G20 £1.4 Trillion Stimulus Plans
Govt Denies G20 £1.4 Trillion Stimulus Plans
13:45

The Government has dismissed a report in a German magazine that suggests it plans to push for G20 nations to back a $2tr (£1.4tr) global stimulus package.

Excel Conference Centre in East London, which is to stage the G20 Summit

The Excel Conference Centre in East London, which will host the summit

The report in Der Spiegel quoted a draft G20 communique where the $2tr figure appeared in brackets.

It claims the document is a Government proposal to push for the mammoth stimulus package at the global economic summit in London next week.

But it adds the plans are not approved by the broader G20 group of nations.

A Downing Street spokesman strongly denied the suggestion the Government plans to propose the stimulus.

He said the report "is an old draft that has changed in a number of respects".

He added: "While we do not comment on leaks, the $2tr figure referred to is nothing more than the IMF's estimate of action already announced.

Prime Minister Gordon Brown with Chilean President Michelle Bachelet.

Brown on pre-G20 tour

"This is not a new figure, does not relate to any new commitments and is derived from IMF figures already in the public domain."

The draft stated the stimulus would boost growth by 2% and employment by 19 million, the magazine said.

It added Britain was also pushing the G20 to come up with a concrete target for global growth in 2010.

But G20 member states have already pledged total stimulus measures that come close to the $2tr mark.

Gordon Brown, who will host the April 2 summit, has said he expects world leaders to do "whatever it takes" to create growth and jobs when they come together.

The leaked draft makes this motivation clear.

According to Der Spiegel, it contains the following pledge: "We are determined to restore growth, resist protectionism and to reform our markets and institutions for the future.

"We believe that an open world economy, based on the principles of the market, effective regulation and strong global institutions, can ensure sustainable globalisation with rising well-being for all."

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