G8 sees stronger global economy, but warns on debt

DEAUVILLE, France (Reuters) - G8 leaders agreed Friday that the world economy is becoming more "self-sustaining," but that high prices of commodities are preventing further growth.
In a statement to be issued at the end of the two-day summit in France, European nations, the United States and Japan agreed to ensure that public finances are sustainable.
"The global recovery is gaining momentum and is becoming more self-sustaining. However, downside risks remain, and internal and external imbalances remain a concern," the statement said.
"The surge in commodity prices and excessive volatility imposes a significant barrier to recovery. In this context, we agreed to continue focusing on actions required to improve the sustainability of public finances, strengthen the recovery and promote employment, reduce risk and ensure strong, sustainable and balanced growth, also through structural reforms. "
"Europe has adopted a comprehensive package of measures to deal with sovereign debt crisis faced by some countries, and will continue to handle the situation with determination and pursue a strict fiscal consolidation, along with structural reforms to sustain growth."
"The United States will deploy a clear and credible medium-term fiscal consolidation, consistent with considerations of job creation and economic growth."
"In Japan, besides providing funding to rebuild after the disaster, authorities also will deal with the issue of sustainability of public finances."