G-8 Leaders Lock Arms on Stimulus Plans - TheStreet

How many G-8 leaders does it take to tell us the economy is still in danger? Apparently, eight. Now what are the leaders, who are meeting in L'Aquila, Italy, going to do about it?

It's more like what aren't they going to do. The leaders said it is too soon to begin rolling back fiscal stimulus plans, and announced their opposition to efforts to do so within their home countries.

In a statement, G-8 leaders said they are noticing some signs of stabilization, but that exit strategies from growth packages should only come once a full recovery is certain.

"We will take, individually and collectively, the necessary steps to return the global economy to a strong, stable and sustainable growth path," the draft read.

The Group of Eight -- United States, Germany, Japan, France, Britain, Italy, Canada and Russia -- was widely criticized for underestimating the economic problems when it met last year. They were notably more cautious this time.

The leaders announced that they will address the flaws in the current economic system to help prevent future crises. They also said they will address issues such as executive pay, definition of capital, risk management and the regulation of hedge funds and credit rating agencies.

But few concrete proposals were specified.

In other news, the G-8 leaders joined with developing countries in agreeing Wednesday that average global temperatures shouldn't increase by more than 2 degrees Celsius in a significant new acknowledgment in the fight against global warming.

They also announced that they supported a goal of reducing greenhouse gas emissions by 80 percent or more by 2050.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.