“Our imperative is to promote jobs and growth,” is the very first line of the joint declaration issued following the G8 summit at Camp David, USA. The need to create growth in and outside Europe was reiterated time and time again in the declaration and in the comments given by the world leaders gathered at Camp David over the weekend. “We commit to take all necessary steps to strengthen and reinvigorate our economies and combat financial stresses, recognizing that the right measures are not the same for each of us,” reads the declaration.

However, the message was not growth whatever the cost. The need for reduced deficits, fiscal reform and low inflation was also stated and restated. “We welcome the ongoing discussion in Europe on how to generate growth, while maintaining a firm commitment to implement fiscal consolidation to be assessed on a structural basis,” the declaration goes on. Greece and the very survival on the eurozone were high on the agenda, but the rhetoric is changing. The possibility of a Greek exit has gone from unthinkable to only undesirable and the outcome of the election in Greece in June, after the failure of any parties to form a government, will most likely determine whether the international community helps to keep Greece in, or aid in an as orderly an exit as possible. “We agree on the importance of a strong and cohesive eurozone for global stability and recovery, and we affirm our interest in Greece remaining in the eurozone while respecting its commitments,” reads the G8's declaration.

There has been plenty of talk from within the EU and the eurozone and, indeed, around the world on the need for growth as well as austerity, but a real plan of action is yet to be seen. All parties seem to agree that a strong, functional eurozone is necessary, not only within the EU, but also outside, due to the influence it has on global demand. “We all have an interest in the success of specific measures to strengthen the resilience of the eurozone and growth in Europe. We support Euro Area Leaders’ resolve to address the strains in the eurozone in a credible and timely manner and in a manner that fosters confidence, stability and growth,” states the declaration from the G8, which includes the USA, Japan, Russia, Canada, Italy, the UK, France and Germany.

In a few days time ( May 23 ) all eyes will be on the European Council meeting, where leaders will be under intense pressure to give detailed, concrete plans for economic growth and the preservation of the eurozone. Commentators suggest that Germany remains most in favor of putting austerity first, while France and Italy are believed to lean towards more emphasis on creating jobs and growth. Everyone agrees that the EU needs growth and austerity, but they disagree over which comes first.

Liam Lever, liam@romania-insider.com