UK’s Osborne claims victory on G20 deficit language

BUSAN, South Korea, June 5 (BestGrowthStock) – British finance
minister George Osborne welcomed apparent backing on Saturday of
his plans to reduce Britain’s deficit by fellow ministers from
the G20 group of developed and emerging economies.

The new language in a joint statement by the G20 leaders
after a two-day meeting in the South Korean port city of Busan
could also help heavily indebted euro zone countries to find the
resolve to reduce borrowing, Osborne added.

“I think we’ve achieved a significant success by getting the
endorsement of the G20 for the fiscal position we adopted just
three weeks ago,” he told a news conference after the meeting.

The G20 statement did not name Britain specifically, but in
new language supported “recent announcements by some countries”
about spending cuts to take effect in 2010 and stronger national
monitoring bodies.

Six billion pounds of budget cuts this year and an Office of
Budget Responsibility were key campaign pledges for Osborne’s
Conservative Party in the run-up to Britain’s May 6 election, and
have since been implemented via a coalition with the centre-left
Liberal Democrats.

Osborne said G20 ministers had not explicitly discussed the
level of the euro, which has fallen to a four-year low against
the dollar.

“The issues with the euro zone and the fiscal problems faced
by some of the members of the euro zone did come up in
discussion, and reinforced the view of the G20 that the countries
with these problems need to get on and deal with them,” Osborne
said.

“From my conversations with other participants there’s been a
notable change of tone. And the new British government has made
sure we’ve focused on … countries with these issues. The G20
communique will help some of the governments in the euro zone who
face these challenges to stick to their course.”

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(Reporting by David Milliken; Editing by Alan Wheatley)

UK’s Osborne claims victory on G20 deficit language