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G8 and G20 Summits

I discussed that with the IMF over the weekend. Dominique Strauss-Kahn's own interventions in the debate at the G20 were very strongly in favour of fiscal consolidation, particularly for the countries—such as Britain—with the largest budget deficits. I looked around that table at the G20. According to the IMF's figures, our budget deficit, at over 11 per cent., is the biggest. The answer to the question "Do they mean us when they are talking about excessive deficits?" is "Yes, they do." The key point made by Dominique Strauss-Kahn and others is that this is a package. If we are to maximise world growth, which will bring more jobs and livelihoods, we need a combination of fiscal consolidation in the countries that require it and measures to deal both with the imbalances in the developing world and with the structural problems in the developed economies such as Germany's. That is what needs to be done. Dominique Strauss-Kahn is recommending exactly the sort of action that we are taking here in this country.