Growth the only way out of crisis
But most G8 members cannot afford to raise more debt for stimulus packages
No matter the assurances from the leaders of the Group of Eight (G8), citizens and investors in these European countries, hit by financial instability and recession, are taking their money out of the banks and running.
A run on banks by clients and investors is a sure sign that the eurozone financial crisis is beyond anybody's control. There are reports of customers withdrawing their money from banks in Spain and Greece, on the back of fears of nationalisation of financial institutions or a forced exit from the eurozone.
Speaking at the end of the summit, US President Barack Obama said it had moved towards a consensus that Europe needs a balance between growth and jobs and spending cuts. The G8 correctly recognised that there is no single, common solution for their economic malaise. Growth is the only sustainable way out of the crisis, but the reality is that most G8 members cannot afford to raise more debt for economic stimulus packages.
Ironically, it is the emerging economies that were not at the summit that are best placed to manage the crisis and aid some of the G8 countries by maintaining demand for their goods and services and continuing to buy their debt.
