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G8: economy remains weak

The two-day G8 summit in the Northern Irish Lough Erne didn’t bring any surprises to the market, but has once again highlighted the key problems of the global economy and politics.

G8 leaders agreed in a point that world economic prospects remained weak even though risks have lessened due to policy action taken in the United States, the euro zone and Japan. Politicians are convinced that economy has foregone the worst stage of “credibility crisis”, but still a lot has to be done. G8 leaders discussed the urgent need for the EU banking union – this topic will be developed on the forthcoming Eurogroup meeting (June 20) and the EU summit (June 27-28).

G8 statement also said Japan needed to address the challenge of defining a credible medium-term fiscal plan. "Japan's growth will be supported by its near-term fiscal stimulus, bold monetary policy and recently announced strategy for promoting private investment," it said. "However it will need to address the challenge of defining a credible medium-term fiscal plan”. Meanwhile, the EU and the US were discussing the creation of the world's largest free-trade pact. 

Anti-G8 protest close to the G8 venue of Lough Ern

Source: The Irish Times

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