G20 Leaders Head Home, Vowing to Cut Deficits

The leaders of the Group of 20 nations wrapped up their 2-day summit today in Toronto, striking an agreement to reduce deficits over the next 3 to 6 years without endangering the global economic rebound. The major economic powers vowed to cut their deficits in half by 2013 and "stabilize" debt by 2016 while saying the reductions would be "carefully calibrated to sustain the recovery," reports the Washington Post.

The dates are not formal deadlines, thanks in large part to pressure exerted by the US and other allies—including Japan, to which the timeline doesn't apply, the New York Times notes. The American delegation was in the minority cautioning about a double-dip recession. Said one expert: "Aiming for a gradually improving debt-to-GDP ratio by 2016 is hardly wild-eyed fiscal conservatism."