Economic gloom piles pressure on G7 finance talks | business | Hindustan Times
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Economic gloom piles pressure on G7 finance talks

The Group of Seven industrialised nations' (G7) finance chiefs met on Friday under heavy pressure to take action to revive flagging economic growth in rich nations and calm the biggest confidence crisis in financial markets since the global credit crunch.

business Updated: Sep 09, 2011 20:19 IST

The Group of Seven industrialised nations' (G7) finance chiefs met on Friday under heavy pressure to take action to revive flagging economic growth in rich nations and calm the biggest confidence crisis in financial markets since the global credit crunch.

Host country France has called for a coordinated response from G7 nations after mounting anxiety over Europe's debt crisis and the fragility of its banks caused a big fall in world stock markets in recent weeks.

Differences between the economic problems facing the US, Britain and euro zone states are complicating the task though, meaning one-size-fits-all solutions will not work.

International Monetary Fund (IMF) chief Christine Lagarde said in London before boarding a flight for Marseille that policymakers must have the conviction to tackle today's challenges, including with unconventional measures, and cautioned against too much fiscal consolidation in a climate of sputtering growth.

A source in Brussels has said the G7 would likely agree to keep monetary policy accommodative, slow fiscal consolidation in states where that is possible, and implement structural reforms.