CARBIS BAY, England, Jun 11 (.) – Group of Seven leaders agreed on the need to continue supporting their economies with fiscal stimulus, a source familiar with the discussions said on Friday, the opening day of the G7 summit. .
Support for more stimulus was shared by all leaders, including Germany’s Angela Merkel, who has traditionally opposed heavy borrowing to stimulate growth, a position that has been relaxed in the face of the COVID-19 crisis.
The administration of US President Joe Biden has been pressuring its allies to keep spending, while Treasury Secretary Janet Yellen urged her G7 colleagues in February to “go big.”
The source said that G7 leaders believed that there should be long-term policies to ensure the health of public finances in the future, echoing the position of their finance ministers who met earlier this month in London.
The source further assured that leaders believed that a rise in post-lockdown inflation in many countries would be temporary.
Italian Prime Minister Mario Draghi stressed the importance of taking measures to reduce unemployment, such as training and offering support to younger workers, a proposal backed by Canadian Justin Trudeau, according to the source.
(Reporting by Guy Faulconbridge, Written by William Schomberg, Edited in Spanish by Manuel Farías)