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06/25/2010 G8 and G20: World leaders divided on key issues

Public spending cuts, international aid and Afghanistan are likely areas of friction at the two summits

Potential splits are emerging between world leaders on some of the key agenda items for the G8 and G20 summits, which get under way in Toronto today. Barack Obama, David Cameron and other world leaders have been setting out their stances on the following issues.

Recovery

Obama: Last week Obama wrote to fellow leaders warning that drastic cuts to public spending could jeopardise the tentative global recovery and risked a 1930s-style depression. "We must learn from the consequential mistakes of the past when stimulus was too quickly withdrawn and resulted in renewed economic hardships and recession," he wrote.

Cameron: As one of Europe's main deficit hawks, the prime minister regards cutting spending as central to the global recovery. In an article today for Canada's Globe and Mail he praised the hosts of the summits for a "tough and successful programme of spending cuts to get your debt down and economy back on track" in the 1990s.

Others : The German chancellor, Angela Merkel, hit back at Obama's warning by vowing to push ahead with public sector spending cuts and claiming that global economic recovery can be maintained without stimulus programmes. The Canadian prime minister, Stephen Harper, urged the summit to agree concrete deficit-reduction goals as a way of restoring investor confidence following the Greek debt crisis.

Sanctions against Iran

Obama : The US led has international efforts to impose UN sanctions against Iran over its nuclear programme. Obama has vowed to "vigorously enforce" the new sanctions, which have just been backed by Congress.

Cameron: Along with other EU leaders, Cameron has backed the sanctions. He said a strong package of sanctions against Iran was "incredibly important".

Others: In a sign of improved relations with the US, the Russian president, Dmitry Medvedev, has agreed that sanctions should be boosted. But two of the other G20 members, Turkey and Brazil, defied Washington by voting against.

International aid

Obama : Like other world leaders, the president has made only vague commitments to discuss international development at the summits, despite a looming UN review that is expected to show that the world is falling dramatically short of achieving the Millennium Development Goals.

Cameron: The prime minister is sceptical of the kind of headline-grabbing promises on aid that his predecessor, Gordon Brown, has delivered at previous summits. "Those intentions rarely seem to come to fruition in real, tangible global action," he warned today. But international aid and health were the only two areas protected from spending cuts in this week's budget.

Others: Activists call on G8 and G20 leaders to fulfill previous commitments on aid. This week Harper said that the Canadian government would invest $400mits share in the mortgage, taken in Copenhagen last year. He also said that the attention of G8 will be placed on reducing infant mortality and the number of women dying during pregnancy and childbirth.

Afghanistan

Obama: The president is under pressure to show other world leaders that the campaign in Afghanistan won't "skip a beat" following the dismissal of General Stanley McChrystal. He also needs to shore up Nato support for the policy amid signs of cracks in the alliance during a particularly bloody phase in the fighting.

Cameron: The death on Sunday of the 300th British soldier in Afghanistan prompted Cameron to reaffirm the UK's commitment to fighting the Taliban. But the new government is reviewing its long-term commitment and growing scepticism about the war effort was underlined this week by the departure of Sir Sherard Cowper-Coles, Britain's special envoy to Afghanistan.

Others : Australia this week signalled that it may start bringing 1,550 troops home within two years. Meanwhile, Canada plans to withdraw its 2,800 troops next year. Some non-G20 members have also signalled their intentions to withdraw troops. The Netherlands is pulling out its 1,600 troops in August and Poland wants to scale back its 2,600-strong force from next year.

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