G20 Draft: Advanced nations to ensure pace of austerity won’t kill recovery

Reuters has obtained more details from the draft:

• Advanced economies to ensure the pace of fiscal consolidation is appropriate to support recovery, based on country-specific circumstances
• If conditions deteriorate, countries with fiscal space will take action to boost demand
• US to calibrate pace of consolidation to avoid a sharp fiscal contraction in 2012 but ensure finances are put on a long-term sustainable path
• G20 to be vigilant on oil prices, will be ready to take additional action as needed
• G20 welcomes Saudi readiness to mobilize spare oil production capacity
• G20 will also remain vigilant on other commodity prices

G20 trying to calm markets with words and promises. Sounds like everyone has given up on austerity and has committed to a few more years of debt-fuelled growth that will precipitate a larger debt crisis in the future.