The summit of the G-20 started last night in Washington, with a working dinner at the White House, which served to prepare a draft that will be debated throughout the day. The text will incorporate a series of principles for action that will be developed in the coming months and whose evolution will be discussed at the next summit to be held before March 31 in London, with the same participants.
The countries of the G-20 are convinced that it is necessary to boost demand and economic activity. To achieve those countries are considering launching a fiscal stimulus plan for the entire world that to be effective, must be coordinated among all developed countries.
For now, have not leaked details of this initiative, nor the budget we will have available. Spain is willing to consider the measure. This was said yesterday at the working dinner the chairman of the Government, José Luis Rodríguez Zapatero. The host, George W. Bush avoided support this initiative by ensuring that it can no longer engage in this regard, because his administration is about to leave the White House next January 20, to give the baton to President-elect Barack Obama.
The draft, agreed by most heads of government, ensures that the financial crisis is not just the fault of financial institutions, but also is responsible for the lack of regulation and the politicians who have failed in oversight.
This crisis is improving in the short term, by stabilizing the measures implemented, according to the draft. Now it is necessary to promote coordinated measures. The G-20 believes that it would be a positive boost aggregate demand. To do this we must develop an expansionary fiscal and monetary policy. Furthermore, countries are in favor of strengthening the regulation of the financial system at the national level, but overall coordinating elements. Finally, the G-20 is committed to encouraging free trade and attacking protectionism, and to try to advance the Doha summit.
Zapatero, who has been received by Bush with "happy to see you" and "thanks for coming," he noted in his testimony that there are two levels in the crisis, a reference to the financial economy, which already is being taken in a coordinated manner and another, referring to the real economy. This is where actions are needed to drive this forward, according to Zapatero, who yesterday sat in the White House, between Angela Merkel and the Dutch finance minister.
The chairman of the Government has indicated that the last twenty years have been the best for the world economy for growth for both savings. Now, for the financial crisis "are seeing stagnation have failed because the mechanisms of regulation and supervision, said the president.
Zapatero said that the economic fundamentals are not bad. "We must and we can get out of the crisis, but for this we need to coordinate policies."