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Support for More Stimulus Waning Ahead of G-20


There are growing indications that calls for additional spending to spark an economic recovery will go unheeded at this week's major meeting of world leaders.

U.S. President Barack Obama and British Prime Minister Gordon Brown have been pushing for additional stimulus measures ahead of this week's Group of 20 meeting in London. But a G20 document obtained by the British newspaper the Financial Times contains no specific plans.

Instead, the document reinforces the need for countries to avoid actions that would hurt free trade and calls for some agreement on more regulation for the banking industry.

And on Sunday, Australian Prime Minister Kevin Rudd said any talk of additional stimulus measures would have to wait until after the summit.

In an interview with the "Financial Times," President Obama said he was optimistic the G20 summit would establish a framework for an economic recovery, saying leaders know they must "deliver a strong message of unity."

Mr. Obama is scheduled to leave the U.S. on Tuesday to travel to London for the summit.

Still, some see the lack of agreement on a global economic stimulus as a blow to the summit's host, British Prime Minister Gordon Brown, whom they say set lofty goals ahead of the meeting.

Meanwhile, protesters have already begun demonstrating on the streets of London ahead of the summit, venting their anger about an economic downturn that has affected their daily lives.

The G-20 was established one decade ago to bring together representatives of key industrialized and developing economies for talks about global economic issues.

The G-20 members are: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States, and also the European Union, which is represented by the rotating Council presidency and the European Central Bank.

Some information for this report was provided by Reuters.

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