Finance ministers from the Group of Eight industrialized nations say
their economies are showing "signs of stabilization," but the world's
financial situation is still uncertain.
In a statement Saturday
after a two-day meeting in Italy, the G8 ministers said risks to
stability remain and warned that unemployment might continue to
increase even after growth resumes.
The ministers said they have
started to consider how to unwind economic stimulus measures once a
recovery is certain and asked the International Monetary Fund to study
They also highlighted their commitment to
provide more stimulus if needed, as long as it does not risk driving up
inflation or leading state budgets into further deficit.
meeting of Italy, Britain, Canada, France, Germany, Japan, Russia and
the United States was aimed at finding middle ground ahead of a summit
of national G8 leaders scheduled for July.
The G8 nations have been divided over how to handle stimulus spending.
and Germany say early signs of recovery suggest governments should
prepare to scale back spending and debts, while the U.S. and other
nations say it is too soon to abandon rescue plans as recovery is not
There also have been divisions over a call for
"stress tests" to check the financial stability of European banks, with
the U.S. behind the idea, but some European countries resisting.
Saturday's statement did not make specific mention of stress testing,
saying only that nations would take needed actions to ensure the
soundness of banks.
As the ministers met Saturday, hundreds of
demonstrators rallied in protest, waving flags and banners and calling
for an end to debt.