The European Union called today on leaders from the Group of 20 rich and emerging nations to restore confidence in the global economy by agreeing on when to withdraw stimulus measures that are supporting economic growth, AP reported. In a letter to G-20 leaders, the EU also pushed for a global financial transaction tax and levies and taxes on financial institutions worldwide to help pay the costs of unwinding or bailing out banks at risk of collapse. European governments' moves to cut public debt sharply have raised alarm in the United States and other nations that prioritize stimulus spending to keep economic growth afloat. Herman Van Rompuy, who leads talks between the EU's 27 governments, told the European Parliament in Brussels that Europe sees its austerity programs as essential to curb a damaging debt crisis that has already caused the euro to shed some 20 percent of its value against the U.S. dollar. «Failure to correct unsustainable deficits would ultimately lead to a fatal loss of credibility and confidence with lasting economic damage,» he warned. «Provided we persevere, I have every confidence that Europe will turn the corner.» All EU nations are aiming to start debt reduction efforts next year _ even countries like Germany, the region's economic powerhouse, which is not facing a major debt problem, triggering worries that European austerity could go to far and hold back an economic recovery. The letter from Van Rompuy and Jose Manuel Barroso, the head of the EU's executive commission, says the G-20 should agree on «a coordinated and differentiated exit strategy.» -- SPA
