G8 leaders believe the world economy still faces "significant risks" and may need further help, according to summit draft documents that also reflect failure to agree climate change goals for 2050." Although there have been signs of stability in the economy and the sentiment has improved, the real economy has not recovered yet with job and wage conditions still stagnant," said Takao Hattori, senior strategist at Mitsubishi UFJ Securities. But few big initiatives are expected as the G20, a broader forum that also includes the main emerging economies, is tasked with formulating a regulatory response to the crisis and meets in September in Pittsburgh after an April summit in London. Not mentioning China's push for a sensitive debate about a long-term alternative to the dollar as global reserve currency, the draft talked only of global "imbalances". G8 diplomats had said this might be the only oblique reference to currency. "Stable and sustainable long-term growth will require a smooth unwinding of the existing imbalances in current accounts," read the draft prepared for the G8 talks.
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