Economy Decoded

The 39th G8 Summit at Lough Erne, Northern Ireland: Day 1

By | 18 Jun, 2013 1:05 PM |

10

SHARES

The 39th G8 Summit commenced on 17th June, 2013 in Lough Erne, Northern Ireland. British prime Minister Mr David Cameron is playing the host to the two day event, which is witnessing the coming together of 8 wealthiest nations of the world, namely, the USA, UK, France, Germany, Italy, Japan, Russia, Canada and
the European Union (it cannot host or chair meetings).
British PM Mr Cameron has set forth the agenda of the summit, which encompasses “three issues which are critical for growth, prosperity and economic development across the world: advancing trade, ensuring tax compliance, promoting greater transparency”

The first day of the summit turned out to be quite eventful and saw some major announcements coming.

First of these pertained to the announcement for a ‘historic’ EU-US trade deal, which is being cited by Mr. Cameron as what could be the biggest “bilateral trade deal in history”, for which the first leg of negotiations would kick off in Washington in July.

Also, Mr Cameron amply utilised the G8 forum to seek a clear position from Russian President Mr Vladimir Putin, over the tensions prevailing between the two nations on the issue of Syria. These differences have been sparked off because of Russia’s constant support of the despotic Bashar Assad regime in Syria, while all other G8 members have taken a diametrically opposite stand.
In a press conference on 16 June, 2013, both British PM Mr Cameron and Russian President Mr Putin accepted that there were differences on the matter at hand, however Mr Putin showed a sign of potential agreement by remarking that both the nations had a “common goal and a common desire to provide conditions for the settlement of that conflict”.

This development can prove to be a lynch pin in deciding Syria’s fate, keeping in mind USA’s recent announcement to supply Syrian rebels with arms.

The day 1 negotiations concluded with a communique, an official statement by the ministers, which outlined “promoting growth and jobs” as the top priority, in the backdrop of the recent turmoils that the world, at large, has been plunging into.

While the progress made by European Union in abating the recent crisis and USA’s pace on its road to recovery were appreciated, it was recognised that there was a strong need to continue with these reforms in order to resuscitate the health of the major economies, which required accommodative monetary policy by the central banks of these countries to reduce volatility in global prices. The role of governments in ensuring flexible fiscal policy was also underpinned.

Finally, the nations agreed for providing greater impetus to small and medium enterprises(SMEs), by improving credit flows to them and restoring general confidence level.

While one can surely see a lot of activity on the first day itself, the success or failure of the summit rests on the key discussions of the second day of talks and more importantly, on whether the G8 is able to address the large cracks in the global political and financial infrastructure, which have resulted in the culmination of the recent contemporary crises. Only when these talks are translated into reality, can we place the crown of success on the summit…So, lets keep our fingers crossed for the major developments that await the global community on coming day!

Views presented in the article are those of the author and not of ED.