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"Stability And Confidence" Back In Global Economy, Says Osborne At Start Of G7 Summit

posted 10 May 2013, 05:38 by Mpelembe   [ updated 10 May 2013, 05:38 ]

Britain's Chancellor George Osborne arrives to open G7 Summit near London saying the finance ministers need to focus on how to nurture growth.

LOWER HARTWELL, ENGLAND, UK (MAY 10, 2013) (UK POOL) - Britain's Chancellor George Osborne arrived at the start of the G7 finance ministers meeting near London on Friday (May 10) vowing to make progress on how to nurture growth.

"The good news is that some stability and confidence has come back into global economy but we have got much more to do," he said on his way into the summit held at a 17th century country house in Lower Hartwell, west of London.

"For Britain we know, as we've seen over the last few years, that we are very affected by what happens in our neighbours and I am absolutely determined to focus on nurturing the recovery and not taking it for granted and that is what we are going to do here today," he said.

Osborne, who chairs the talks, is keen for his peers to focus on what more central banks can do to help growth at a time when most governments are trying to cut spending and raise taxes.

Britain's finance ministry said the talks over Friday and Saturday were also likely to focus on bank regulation, tax avoidance and free trade.

The emergency rescue of Cyprus in March acted as a reminder of the need to finish an overhaul of the banking sector, five years after the financial crisis began.

As at last month's International Monetary Fund meeting, Germany may come under renewed pressure to give more support to a banking union in the euro zone.

Osborne also reacted to the news that ratings agency Moody's had downgraded the Co-operative bank's debt rating to junk status.

Asked whether he would consider a government infusion of capital in the Co-op Osborne said: "The Co-op have put out a statement last night about how they are going to strengthen their capital position. Those plans, like the plans of any bank will be supervised by our new PRA, Prudential Regulatory Authority, and in Britain, we now have a very strong independent regulatory system that looks at all of our banks."

He added that the G7 ministers would be "Talking about what we can do to strengthen international co-ordination and regulation of our financial system."