Leaders back Biden G7 call for more economic stimulus

SourceFinancial Times
SectorEconomy
CountryMiddle east

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Joe Biden has won support at the G7 summit for a “carry on spending” plan, as western leaders rejected austerity in a post-Covid world and vowed to tackle inequality at home and abroad.

Biden’s call for continued economic stimulus was backed by fellow leaders at the summit in Cornwall in south-west England, in a gathering framed by leaders as the moment the west starts a fightback against an ascendant China.

The US president opened the first session of the summit at Carbis Bay and — according to one witness — was backed by all G7 leaders as he called on the west to “meet the moment and support the economy”.

Mario Draghi, Italy’s prime minister and former head of the European Central Bank, followed Biden and declared: “There is a compelling case for expansionary fiscal policy.”

Draghi argued it was right to spend now, even if western countries had to commit to longer-term fiscal prudence...read more...