If there is one item on the agenda for the Group of 20 summit that threatens to derail the process, it is the call for fiscal stimulus – tax cuts or public spending increases.
The whole G20 of leading advanced and emerging economies supported the drive for a fiscal boost at the November summit, with leaders vowing to “use fiscal measures to stimulate domestic demand to rapid effect” within a policy framework “conducive to fiscal sustainability”. And almost all the G20 have subsequently announced fiscal packages to boost their economies in 2009.
