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Joe Biden has won support at the G7 summit for a plan to “move forward” as Western leaders rejected a post-Covid world downturn and confront inequality at home and abroad.
Leaders were encouraged in Biden’s call for continued economic momentum summit in Cornwall In a gathering of leaders in the south-west of England, at a time when the West is beginning to fight against rising China.
The U.S. president opened the first session of the summit in Carbis Bay and – according to a witness – backed all G7 leaders when he called on the West to “find the moment and stand up for the economy”.
Mario Draghi, Italy’s prime minister and former head of the European Central Bank, followed Biden and said: “There is a strong case for fiscal policy expansion.”
Draghi argued that spending now was right, even though Western countries had to opt for long-term fiscal prudence to calm markets and ensure central banks were not afraid to take it and raise interest rates too high.
In a statement that summed up the apparently Western conversion to social democracy, summit presenter Boris Johnson said it was essential that the pandemic does not cause “permanent scars” of inequality.
Opening the summit, he said: “It is essential not to repeat the mistakes of the last great crisis, the last great economic recession of 2008, when the recovery was not uniform in all parts of society.”
The Conservative Prime Minister of the United Kingdom has previously described the austerity policies adopted by David Cameron’s government as a “mistake”.
Johnson also said the recovery should be environmentally friendly and should be “gender more neutral and feminine”.
While the G7’s commitments are not binding, the West’s desire for fiscal expansion this fall is the scene of awkward debates between Johnson and his fiscally conservative Chancellor Rishi Sunak.
G7 countries will use the summit to commit to higher spending to help the developing world, with the clear message that the West offers an alternative to the support that Beijing offers.
Leaders they agreed to supply 1 billion doses of vaccine to the poorest countries, Comes in response to China’s “vaccine diplomacy”. The US has claimed that Beijing is providing its medical assistance “with linked chains”.
The G7 will use weekend meetings to discuss a plan to tackle climate change in poor countries, a capital investment program counterbalanced by some British officials. Chinese belt and road global infrastructure program.
In the meantime, the summit will approve a plans a new system for taxing the largest multinational companies, although there is still a conflict over exactly which companies should be in control.
Biden doesn’t want too much of a burden for U.S. tech companies, it’s Britain fighting to exclude large banks. “The U.S. does not see a conceptual basis for excluding financial services,” a U.S. Treasury official said.
Four years after Donald Trump’s presidency, when the G7 split and became a sad forum for rage, the atmosphere on the Cornish coast was completely better at the start of the three-day summit.
French President Emmanuel Macron threw his arm around Biden — his first trip abroad as U.S. president — on Carbis Bay beach and argued that democracies should work in the “middle class”.
Meanwhile, Canadian Justin Trudeau – who previously warned that the austerity programs were contributing to the rise of populism – was among those plunging into the sea.
On Friday evening, G7 leaders and partners traveled to the Eden Project, a futuristic environmental park, to meet Queen Elizabeth and other members of the royal family. A beach barbecue is scheduled for Saturday.
The summit continues on Saturday with further discussions on the economy, foreign policy and health; it ends at lunch on Sunday after a debate on tackling climate change.
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