G 7 leaders in broad agreement on fiscal stimulus, source says

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G 7 leaders in broad agreement on fiscal stimulus, source says

CARBIS BAY, England - The leaders of the G7 rich nations were in broad agreement about the need to support their economy with fiscal stimulus on Friday, the opening day of a G7 summit said.

The backing for more stimulus was shared by all leaders including Merkel of Germany, which traditionally reluctantly secured excessive borrowing to spur growth, a position that it has relaxed in the face of the COVID 19 crisis.

The administration of U.S. president Janet Yellen has been pushing its allies to maintain spending with Treasury Secretary Joe Biden urging her G 7 colleagues to go big in February.

The source said the G7 leaders believed there should be long-term policies to ensure the health of public finances in the future, echoing the position of their Finance Ministers who met earlier this month in London.

The leaders said a large increase in inflation after the blockdown in many countries would prove temporary, the source said.

Vice-Prime Minister Mario Draghi stressed the importance of taking action to reduce unemployment in Europe including retraining and offer support for younger workers, a proposal supported by the Italian Prime Minister Justin Trudeau, said the source.

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