The Group of 8 (G8) is a body of World's Top 8 industrialised nations. The G8 Summit was formed in the year 1975 by eight member nations: Russia, USA, UK, Japan, Germany, France, Italy & Canada. The European Union (EU) is its 9th member. The G8 Finance Ministers recently met at Lecce (Italy) to review the progress of global economic recovery. The view expressed by them is: "The global economic outlook is improving but the situation remains uncertain, and unemployment may continue to increase even after the growth begins picking up". The concluding statement made by G8 FMs is: "We are in the middle of the worst crises since the Great Depression".
Although the Group supported the government action in the wake of the financial crises, it noted that the stimulus must be consistent with the price stability and medium term fiscal sustainability. In view of the stimulus packages being detrimental to public debt putting inflationary pressure on the economies, several ministers felt it was time to scale back government action. The "Lecce framework" agreed to strengthen corporate governance, market integrity, financial supervision, and transparency of macroeconomic policy. The undercurrent of the Lecce summit was the concern about inflationary pressures and continued unemployment. These issues will be presented at the extended G20 meeting scheduled to be held at Pittsburgh, USA in September '09.
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