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The US is concerned that European cuts will slow global growth (Photo: Wikipedia)

Europe and US clash over timing of austerity measures

The weekend's meeting of G20 finance ministers and central bankers saw heated exchanges between US and European representatives, with division centering on the speed at which government budget deficits should be reduced.

US treasury secretary Timothy Geithner argued the case for fiscal consolidation over the "medium term," while Europeans, rattled by the region's ongoing debt crisis, called for faster cutbacks.

"Stronger domestic demand in Japan and in the European surplus count...

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The US is concerned that European cuts will slow global growth (Photo: Wikipedia)

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