There have been words of reassurance but also caution from the world’s richest nations.
Group of Eight finance ministers meeting in Italy say there are signs of stabilisation in their economies. They highlight a recovery in stock markets, an improvement in lending and saving conditions and greater business and consumer confidence. However, in a final communique, they say the situation remains uncertain and significant risks remain. Italian Finance Minister Giulio Tremonti said: “Speculation is starting to return, and that’s a sign that the crisis over liquidity is over, a sign that a certain method of finance is emerging, starting to react in a way that’s not nice, like in June and July last year. That’s what we’re looking at.” The ministers say they remain focused on addressing the ongoing global crisis, stressing that they’ve already taken what they call “forceful and coordinated” action. The meeting also talked about what’s being referred to as “exit strategies”: the unwinding of the emergency financial measures taken to tackle the crisis. The ministers say they have called on the International Monetary Fund to help in this process.