Monitor

All the News of the World Comment on G7's response to the global economic difficulties

ONE HALF of the world's economies are close to collapse. And the other half are alarmed. Bundesbank President, Hans Tietmeyer, wants to support tried and tested prescriptions - more transparence in the markets and responsible supervision of the banks in order to ensure that economic problems are detected regionally before they become crises. The majority of US politicians block such an increase because they believe that billions of dollars of aid to Asia and Russia did not bring any results and made the situation even worse; financial markets will be disappointed by what was agreed upon at the summit. One thing is certain: the name "the new Bretton-Woods-System" is not deserved.

Die Welt, Germany

AN EXPANDING American economy is the key to restoration of global growth. Whether achieved by a cut in interest rates or a major tax cut, a strong commitment to reinvigorated growth is essential. Above all, the institutions that deal with international financial crises need reform. A new financial management to replace that of Bretton Woods is essential. It must distinguish between long-term and speculative capital, and cushion the global system from the excesses of the latter. (Henry Kissinger)

Los Angeles Times

THE RECOVERY of the Japanese economy is of critical importance for the health of the world economy. The government, and ruling and opposition parties, must take swift action, mindful that the country now bears a heavy international responsibility. Japan has to do whatever it takes to get its economy back on track. The nation's financial assistance scheme will not have much impact if economic recovery is not realised soon.

Yomiuri Shimbun, Japan

IT WAS apparent at Saturday's G-7 meeting that the truth is beginning to emerge from behind the platitudes and fine words. While the US accuses the weakness of Japan for causing the crisis, the Japanese declare the States responsible, so slow were they in lowering interest rates. America, meanwhile, asks for reform from Japan, but is unable to run politics in its own backyard, hounded by the Clinton scandal and his isolation from Congress.

El Pais, Spain