The draft version of the summit communiqué, drawn up ahead of a G20 leaders' meeting this weekend in Toronto (26-27 June), reflected the different views within the G20 on how to proceed with economic policy.
The draft, dated 11 June, said the recovery was "uneven and fragile," with unemployment at unacceptable levels. "There is no room for complacency," it said.
At the same time, it said "fiscal challenges in many states are creating market volatility, and could seriously threaten the recovery and weaken prospects for long-term growth".
The United States has argued for continued stimulus spending by governments to ensure the global economic recovery does not fizzle out.
Other countries, such as Germany, intend to cut spending quickly in order to bring down public debts and deficits.
Reforms of banking around the world, along with ways to ensure the recovery of the global economy, are high on the agenda of this weekend's summit.
"Further actions are still required to address the underlying causes of the global financial crisis and promote more responsible and transparent banking sectors," it said, without spelling out further details.
The draft communiqué is likely to be negotiated and amended by leaders at the summit.
EU to push transactions tax
Meanwhile the European Union formally requested in a letter yesterday (23 June) that the world's largest economies explore the introduction of a global tax on financial transactions.
Writing to the G20 before a summit in Toronto on 26-27 June, Herman Van Rompuy, president of the EU Council, which represents EU member states, said the world needed a level playing field on bank levies and transaction taxes.
"We consider that international work on levies and taxes on financial institutions should continue to maintain a worldwide level playing field," he said in the letter, written jointly with European Commission President José Manuel Barroso.
"Also the introduction of a global financial transaction tax should be explored and developed further in that context," the letter continues, echoing conclusions drawn at last week's summit of EU leaders on financial reform and economic government ahead of the G20 (EurActiv 18/06/10).
The draft communiqué said the G20 would push for the conclusion of a long-delayed world trade deal and would pledge to extend a commitment not to raise barriers to investment or trade for three more years, through 2013.
The G20 summit also comes days after China dropped the controversial peg of its currency to the dollar, a step long called for by the United States and other countries as an important part of the push to rebalance the global economy.
(EurActiv with Reuters.)
