Thursday, June 4, 2026
ADVT 
National

G7 Leaders Will Hear Canada's New Approach For Boosting World Economy

Darpan News Desk The Canadian Press, 25 May, 2016 11:50 AM
    ISE, Japan — A group of powerful world leaders is about to hear a starkly new take on what Canada thinks must be done to revive the stagnant global economy.
     
    Prime Minister Justin Trudeau will promote Canada's growth-boosting plan to his Group of Seven counterparts this week in Japan.
     
    Trudeau's theme: government investment is better than belt-tightening.
     
    This approach will sound different to G7 leaders than the message they likely heard from Trudeau's predecessor, Stephen Harper.
     
    The ex-Conservative leader, who lost power to Trudeau's Liberals last fall, regularly called upon the global community to apply budgetary restraint.
     
    Trudeau's approach is expected to be well-received by most of his G7 peers at the two-day summit, which begins Thursday in Japan's Ise-Shima region.
     
    Most of the leaders have supported the use of fiscal tools to foster growth, but countries such as Germany and the United Kingdom are likely to stick to their cost-cutting approaches.
     
    One of Canada's closest G7 allies in the anti-austerity camp is Japanese Prime Minister Shinzo Abe, who met with Trudeau and International Trade Minister Chrystia Freeland on Tuesday in Tokyo.
     
    "Prime Minister Abe has been a real pioneer in emphasizing the need for governments to use fiscal tools," Canadian, who participated in Trudeau's bilateral meeting with Abe, told reporters Wednesday in Tokyo.
     
    "And, as you know, our government very much is in agreement ... So, we'll be very pleased to engage in that discussion."
     
    Japan, however, has a huge amount of debt compared to Canada and has been forced to try a combination of approaches to lift growth, including asset purchases or "quantitative easing."
     
    The situation is better in Canada, where the Liberals say low interest rates combined with the country's relatively low debt-to-GDP ratio have created good borrowing conditions.
     
    As a result, they have committed to running years of budgetary deficits in order to double federal infrastructure spending over the next decade to $120 billion. 
     
    "Canada, at this meeting, will be speaking strongly on the side of investing in growth, rather than in favour of austerity," Freeland said.
     
    The government believes the G7, which also includes the United States, the United Kingdom, France, Italy and Germany, provides a good forum to share Canada's approach.
     
    Trudeau is scheduled to get one-on-one time Thursday with French President Francois Hollande and German Chancellor Angela Merkel on the sidelines of the summit.
     
    However, he likely will have a tough time persuading Merkel to make a big shift away from her cost-reducing stance.
     
    The G7 leaders will also discuss a range of other subjects, including security, refugees, health, climate change and the empowerment of women.
     
    Canada is expected to try to encourage G7 partners to join Ottawa in refusing to pay ransoms to kidnappers.
     
    The issue is of particular significance for Canada after militants in the Philippines beheaded Canadian hostage John Ridsdel last month. Ridsdel was kidnapped alongside fellow Canadian Robert Hall, who is still being held by the group.
     
    "I think we're seeing a summit where there won't be a single, burning issue," John Kirton, director of the G8 Research Group at University of Toronto, said in a recent interview.
     
    Kirton believes U.S. President Barack Obama's visit to Hiroshima is likely to attract the majority of the media attention away from the summit. 
     
     
    Obama will become the first sitting U.S. president to visit the city, which was levelled by an atomic bomb during the Second World War.
     
    But Kenjiro Monji, Japan's ambassador to Canada, said in a recent interview that the global economy will be the "main theme" of the summit. He added it's very important the G7 strikes a strong message about growth.
     
    One expert said while the G7's anti-austerity camp holds the consensus, the challenge is finding a way for heavily indebted European countries to make that shift.
     
    Either way, G7 countries will closely watch how Trudeau's plan unfolds, said Matt Browne, a senior fellow at the Center for American Progress in Washington.
     
    "It would not surprise me in the years to come that the example of Canada, should it prove to be successful, ... would then indeed set an example for others to follow," said Browne, whose organization is run by high-ranking figures in Democratic politics.
     
    With the other leaders at the summit facing domestic hurdles, Browne said newcomer Trudeau and his relatively fresh slate are in a unique position.
     
    "I think that allows him to be braver," he said when asked about the four years of majority government Trudeau has in front of him.
     
    Obama, meanwhile, is seen by many as a "lame-duck" president as his final term nears its end.
     
    British Prime Minister David Cameron is swamped ahead of next month's vote on whether the United Kingdom should leave the European Union — the so-called Brexit.
     
    Browne said observers feel Hollande's presidency has been a disaster.
     
    In Germany, Merkel faces lower levels of growth than expected and the inability of the labour market to integrate refugees, he added.
     
    Italian Prime Minister Matteo Renzi must cope with one of the highest government debtloads in the European Union. Renzi has opposed Germany's austerity position, insisting that spending is the best way to boost growth.
     
     
    Abe also has to deal with a massive amount of public debt and a parliamentary election later this year, which will force him to postpone a planned hike in the national sales tax.

    MORE National ARTICLES

    Foreign Buyers Crushing Home Dreams In Vancouver As Canada, B.C. Do Zip: Study

    The Canadian and British Columbia governments are complicit in fuelling Vancouver's housing crisis as foreign Chinese buyers continue to shut local residents out of the market, a new study says.

    Foreign Buyers Crushing Home Dreams In Vancouver As Canada, B.C. Do Zip: Study

    Pilot Found Dead After Single-Engine Plane Crashes In Alberta Field

    Pilot Found Dead After Single-Engine Plane Crashes In Alberta Field
    RCMP say they were called to the crash 13 kilometres west of Sylvan Lake on Saturday afternoon.

    Pilot Found Dead After Single-Engine Plane Crashes In Alberta Field

    Low Quebec Birthrate Spurs Some Calls For Increased Immigration

    Low Quebec Birthrate Spurs Some Calls For Increased Immigration
    The province's statistics bureau said the 2015 rate was 1.6 children per woman, down one per cent from 2014 and marking the sixth consecutive year it had edged lower.

    Low Quebec Birthrate Spurs Some Calls For Increased Immigration

    Alberta Government Offers Help On Meds, Kids And Moms Affected By Forest Fire

    Alberta Government Offers Help On Meds, Kids And Moms Affected By Forest Fire
    The Alberta government is continuing to roll out support services for evacuees from the massive Fort McMurray wildfire, and it's a lot more than just a cot and a hot meal.

    Alberta Government Offers Help On Meds, Kids And Moms Affected By Forest Fire

    Vancouver Jockey Mario Gutierrez Wins 2016 Kentucky Derby Aboard Canadian-Owned Horse Nyquist

    Vancouver Jockey Mario Gutierrez Wins 2016 Kentucky Derby Aboard Canadian-Owned Horse Nyquist
    LOUISVILLE, Ky. — The racing world wondered if there was a worthy successor to last year's Triple Crown champion American Pharoah. Enter Nyquist.

    Vancouver Jockey Mario Gutierrez Wins 2016 Kentucky Derby Aboard Canadian-Owned Horse Nyquist

    No-Fly List Sharing With U.S. Sparks Concerns About Children Caught In Web

    No-Fly List Sharing With U.S. Sparks Concerns About Children Caught In Web
    Khadija Cajee's six-year-old son Adam had trouble boarding an Air Canada flight to Boston with his father Dec. 31 to see the NHL Winter Classic.

    No-Fly List Sharing With U.S. Sparks Concerns About Children Caught In Web