news Harper urges G20 leaders to 'over-act' rather than underreact to recession

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Harper urges G20 leaders to 'over-act' rather than underreact to recession



2 hours, 47 minutes ago





By The Canadian Press


LONDON - Prime Minister Stephen Harper says he'll urge G20 leaders to "over-act" during deliberations on fixing the global economy Thursday in London.

Harper, in an interview with the American news network CNN, says the magnitude of the global recession makes the dangers of underreacting greater than too much stimulus spending. As the prime minister put it to CNN: "Let's assume that we need dramatic action and let's do it."

His comments come amid reports of divisions within the Group of 20 over the direction of the global economic fix.

French President Nicolas Sarkozy says he'll walk out of the summit if firm action isn't taken on financial system reforms.

U.S. President Barack Obama is urging all the G20 countries - which represent more than 80 per cent of global GDP - to pitch in with surplus spending.

But Obama told a news conference in London that divisions within the group are being "vastly over-stated" and that all countries agree on the broad parameters of a recovery plan.

Harper, who did not plan Wednesday to speak to Canadian reporters travelling with him from Canada, told CNN that there are more economic clouds on the horizon.

"We see little slivers of good news but I would agree with you, there continues to be - we see it in Canada - downward revisions on output and employment. It is disconcerting," Harper said.

"And all the more reason I think if anything leaders should over-act at this point. I think there would be a risk of under-acting. Let's assume that we need dramatic action and let's do it.

"I would like to see it across the G20."

The prime minister has also been selling Canada's more cautious, regulated banking system to international audiences in the run-up to this crucial summit.

That appears to leave Canada as a potential bridge-builder between the two broad thrusts for action when the final G20 communique is released Thursday afternoon.

Central London faced gridlock Wednesday as tens of thousands of protesters mustered in the streets around the Bank of England headquarters. Under a massive police presence, the crowds appeared to be somewhat smaller than the half million that had been anticipated.