Increasing state debt and budget deficits were among the first issues on the agenda at the G8 summit in Canada on Friday, a Russian Finance Ministry official said.
The two-day G8 summit began in Huntsville on Friday. It will be followed on Saturday by a G20 summit in Toronto, which will finish on June 27.
"The first subject discussed by leaders was the current situation in the world economic and financial markets," Andrei Bokarev said, adding that rising state debt and budget deficits as a result of the financial crisis were the most pressing issues.
"The sharp increase in state debt is a pressing problem. Fiscal stimulus policies will mean that the G8 countries will soon encounter huge debt and deficit problems," he said.
Bokarev said that, according to forecasts by leading experts and international organizations, in a few years, the ratio of state debt to GDP could reach around 300% in Japan, 200% in Britain, and 150% in France, Germany and Italy. He said this problem "requires operational decisions to reverse the trend."
The official said the leaders also planned to discuss the future activities of world financial institutions and the economic situation in the eurozone. Talks will focus on the crisis in Greece and the recent decision to establish a stabilization fund to support EU countries experiencing economic difficulties.
TORONTO, June 25 (RIA Novosti)
