From Reuters: Finance chiefs of the world's 20 leading
economies are ringing alarm bells over the U.S. fiscal cliff and Europe's debt
woes at a meeting in Mexico this weekend as they look to push back deficit
reduction targets to help boost growth. Unless
a fractious U.S. Congress can reach a deal, about $600 billion in government
spending cuts and higher taxes are set to kick in on January 1, threatening to
push the American economy back into recession and hit world growth. But with the U.S. presidential election
looming on Tuesday, dealing with the fiscal cliff has been delayed.
"The Americans themselves acknowledge that this is a
problem," a G20 official said on condition of anonymity. "The U.S.
administration says it doesn't want to fall off the fiscal cliff, but right now
it can't tell us how exactly it will address it because that issue is on ice
ahead of the election."
Tax cuts enacted under President George W. Bush are set to
expire in January, when automatic spending cuts designed to put pressure on
lawmakers to strike a long-term budget deal are also set to kick in.
"What remains a sort of key aspect is that the United
States is not respecting the current commitments (to reduce its deficits) and
does not have a credible fiscal consolidation plan," one European official
said….
Find out more at http://www.cnbc.com/id/49682167
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