UPDATE 1-Canadian PM urges G20 leaders to fix deficits

* G20 must act now to sort out public finances – Canada

* Markets will dictate terms unless G20 produces good plan
(Adds background, details, changes dateline, previous
TORONTO)

OTTAWA, May 17 (BestGrowthStock) – Canadian Prime Minister Steven
Harper on Monday urged his fellow Group of 20 leaders to fix
their public finances to avoid the type of crisis recently seen
in Europe.

Harper said in a statement he was writing to his fellow G20
leaders to urge they “confront our fiscal challenge with clear
and realistic plans for fiscal consolidation, or we can wait
for markets to dictate the terms for us.”

Canada is host of next month’s Toronto summit of the G20, a
grouping that gathers most of the world’s major developed and
emerging nations.

Harper repeated Canada’s position that major nations needed
to properly implement stimulus plans to prevent the world from
slipping back into crisis.

“As the recovery becomes entrenched and our stimulus plans
expire, we cannot afford to rest on our laurels. We must
quickly turn our attention to the next major issue facing our
countries and the G20 as a whole, that is, the issue of
restoring our public finances,” he said.

Harper said the G20 had to produce credible plans now which
focused on measures to encourage long-term economic growth.

“While the pace and time frame for the return to fiscal
sustainability will depend on conditions in each country, it
will be imperative for our countries to coordinate their policy
mix,’ he said.

The Canadian leader also said the G20 should be “looking to
countries with high savings to provide greater support for
demand” — a clear reference to China, which is under pressure
to let its currency strengthen to help the global economy.
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(Reporting by David Ljunggren)

UPDATE 1-Canadian PM urges G20 leaders to fix deficits