Even a readjustment of 2025 will not reduce imbalances

The recent crisis of the euro, fed by fears for the Hungarian economy weekend, changed the calendar finance ministers and Governors of the Central of the g-20, banks in South Korea. They stressed the need for rehabilitation of public finances in order and to reassure on growth. "The world economy continues to grow faster than expected", they said in the final release, while warning that the recovery remains fragile, uneven and deserves to be consolidated. "The recent volatility in the markets reminds us that huge challenges remain," warned the great paymaster at the end of two days of discussions. Without naming explicitly the euro area, the g-20 notes that the recent budgetary crises that have shaken financial markets, makes necessary "l has put in place of credible measures conducive to growth, to achieve sustainable public finances".

Three weeks of the meeting of the heads of State and Government in Toronto, the g-20 said that countries facing serious budgetary difficulties must accelerate the pace of consolidation ". But as if committing to clean up public finances, leaders insist on the need to "save the economic recovery". Caught between two fires, budgetary rigour and the support to the economy, they face the dilemma of the more difficult that they will have to resolve in the next few quarters.

Very lively discussions

This is why they believe that the remedies proposed out of the crisis must not be the same for all: "According to their capacities, countries increase their sources of domestic growth, while maintaining macroeconomic stability." Far from imposing a single recipe, the G20 recommends measures "differentiated and adapted to each of the national circumstances".

Before the opening of the Summit, US Treasury Secretary, Tim Geithner, had pleaded for a global stimulus of domestic demand and was surprised at his weakness in some countries such as the Japan and the Germany. Echoes, Masaaki Shirakawa, Governor of the Bank of Japan, welcomed a resumption of stronger than expected in the archipelago and said he was confident in the restart of domestic demand. For the Germany, that US Secretary called "surplus European economy", is the Chancellor Angela Merkel, who, on the sidelines of a visit by Russian President Dimitri Medvedev in Berlin, recalled its commitment to reduce its public deficits and to register the first European economy in a sustainable growth.

As each time, Tim Geithner has singled out China, which must, according to him, to move towards a more flexible exchange system, key to a more homogeneous global growth. He was joined on this point by the international monetary Fund (IMF). "The IMF continues to believe that the renminbi is still really undervalued." Even a readjustment of 20-25 will not reduce imbalances. "He must do more," said Dominique Strauss-Kahn, its Director General. Between July 2005 and July 2008, the parity of the Chinese currency against the dollar from 8.28 to 6.83.

Asked about the climate of the discussions during these two days, the Korean Deputy Minister of finance, Shin I-yoon, said at the end of the meeting: "the discussions were animated, lively...".