The conservative leaders, mainly those from the United Kingdom, South Korea, and Germany, voted in favor of austerity. As predicted, they called for budget cuts to mend frivolous fiscal policies and restore confidence. President Lee Myung-bak from South Korea said, "The countries in crisis will have to find measures that might be painful and politically unpopular in the short term, but nonetheless they must pursue this path" (Castillo). .
In direct opposition to the conservatives were the liberal-minded governments, including Argentina, Brazil, and France. According to them, the Germans' plan for austerity would push struggling countries even further into financial troubles. Instead, they voted for stimulus spending (Castillo).
Although the two sides are in direct opposition, "they agree that we need to listen to Europe, especially to Germany, to see what measures it proposed to exit the euro crisis," said Argentine Foreign Minister Hector Timerman (Castillo). .
The majority of the responsibility to bail out countries that have overspent in previous years falls on Germany, who is expected to contribute one of the largest shares of bail out money at $54.7 billion. Japan will also contribute $60 billion to the International Monetary Fund, while China will contribute $43 billion. The United States declined to contribute this round (Castillo).
In return for their large contribution, Germany requested cutbacks from aid recipients such as Greece, which have made it even harder on their citizens. An increasing number of European countries are calling for spending and growth, but the G-20 statement does not leave much room for that possibility. However, it ambiguously allows for governments to "take into account evolving economic conditions," which could allow Greece more flexibility to create its own plan. It also calls for reeling in banking systems and a "more integrated financial architecture, encompassing banking supervision, resolution and recapitalization, and deposit insurance" (Castillo).
