June 26 (Reuters) - Here are some developments as leaders of the Group of Eight advanced economies and Group of 20 advanced and emerging economies meet in Canada.
TOP DEVELOPMENTS
* World leaders seek a common approach to securing an uneven economic recovery that is showing signs of fading.
As the official summit agenda shifted toward economic and political issues from aid and development, wedge issues such as reducing government debt loads, regulating banks, and the value of China’s yuan currency moved to the forefront.
AUSTERITY VS STIMULUS
* A G20 source said there would be a general agreement in the group’s communique to lower deficits, but that countries could act at their own pace, allowing countries like the United States to keep their stimulus measures in place.
* Indian Prime Minister Manmohan Singh said the G20 major and emerging economies should not rein in budget deficits too fast but coordinate policy to ensure a sustained economic recovery.
POLITICS
* The G8 rich nations are poised to condemn North Korea for an attack that sank a South Korean naval ship, urge Iran’s leaders to respect the rule of law, and ask Afghanistan’s government to be ready by a July conference in Kabul to demonstrate tangible progress it is taking on greater security responsibility, according to a draft communique seen by Reuters.
BANK LEVY
* A draft of the G20 communique seen by Reuters says countries have the option to pursue a bank levy to fund future rescue deals, but that some countries are not looking at the levy option.
CHINESE YUAN
* China’s partners are supportive of Beijing’s decision to move to a more flexible yuan, a senior U.S. administration official said.
PROTESTS
* Labor and peace activists are among groups planning protests in Toronto as G20 summit gets under way in the city.
QUOTES
* "Quite honestly, I think the world economy is faced with a number of uncertainties," India’s Singh.
* "The prime minister also will point out that if the G20 is to be the premier international economic forum, it will need to take further steps to protect the recovery and set in motion strong, sustainable and balanced growth," Canadian Prime Minister Stephen Harper’s spokesman, Dimitri Soudas.
