Group of Seven powers met in Washington today to forge a united front against the economic havoc unleashed by hijack attacks on US targets and to strangle terrorist financing.
Finance ministers and central bankers of the biggest industrial powers -Britain, Canada, France, Germany, Italy, Japan and the United States - opened the one-day meeting with a lunch at the US Treasury.
But US Treasury Secretary Mr Paul O'Neill soon met with a cautious response from Europeans to his call for all G7 members to help propel economic growth after the September 11th assaults on New York and Washington.
German Finance Minister Mr Hans Eichel said shortly before the meeting that the 12 euro-zone countries must hold fast on spending.
While Belgian Finance Minister Mr Didier Reynders, chairman of the finance ministers from the euro zone, said some European countries might consider tax cuts but only while respecting the pact.
The European position set the stage for a difficult meeting for Mr O'Neill, who is seeking broad support, particularly from Europe, to help lift world economic growth.
French Finance Minister Mr Laurent Fabius assured Mr O'Neill just before the G7 meeting that Europe was in no danger of falling into a recession, a source close to the talks said.
AFP