The annual Group of 20 meeting, composed of presidents and prime ministers, concluded on June 19th with little decisive impact. Although many major European economies are teetering on the edge of disaster, the group remained split between the two logical solutions: increase spending to stimulate growth or reduce federal budgets to restore investor confidence. The summit ended with a signed document detailing a comprehensive plan, but it has not yet been released. An even more detailed response is expected to be released at the end of a summit held in Brussels at the end of June (Castillo). .
The Group of 20 meeting is a yearly conference to discuss the status of the global financial status, but it is not surprising to many analysts that a final decision was not made. "On the big issue of the hour, of weeks and months, the G-20 communique is not going to make a big difference," said Jacob Kirkegaard, a research fellow at the Peterson Institute for International Economics in Washington. "The communique will repeat the mantra about strong, balance, global growth. With each member state free to do whatever they want, that's the way to paper over those differences" (Castillo). .
One of the primary focuses for the summit was the global economy's slow recovery, particularly pointing to the impending collapse of the European currency that would devastate the instable economies of the majority of the 17 countries that use the euro (CNN). .
The statements released since the summit have done nothing to ease the troubled markets so far. Even though the statement will likely reiterate the indecisiveness of the group, it will not enforce increased spending unless the current conditions continue to decline. For the time being, instead of stimulus spending, it urged countries to look to education, innovation, and infrastructure investment to encourage their economies. However, it did comment that for countries that can afford to increase their spending, they should do so immediately, commenting that countries with "sufficient fiscal space stand ready to coordinate and implement discretionary fiscal actions to support domestic demand" (Castillo).
