Shadow chancellor Ed Balls has repeatedly used the US approach of cutting the deficit gradually to argue the Coalition is moving too fast and taking a reckless gamble with the economy. But on Thursday Obama unveiled plans to cut the US's $1.65 trillion (�1 trillion) deficit over four years, a faster rate than Britain.
The US President is aiming for a total reduction of 8pc of GDP by 2015. The UK plans a consolidation programme of 8.4pc, but as Mr Osborne started cutting a year earlier, the average pace of reduction is just 1.6pc a year, compared with 2pc annually in the US.
Deficits stayed top of the agenda as the Group of 20 met on the sidelines of the IMF meeting. Seven G20 nations, the US, China, India, UK, Germany, France and Japan will be assessed on whether their imbalances are damaging the global economy.
Should any be found to be adversely affecting the rest of the world by relying too much on exports, as in China, or too much on debt, as in the UK, they will be set a course of action to follow.
Mr Osborne welcomed the IMF assessment process, but suggested there would be no enforcement regime.
The G20 said in its communiqu� yesterday: "We will ascertain for our next meeting the corrective and preventative measures that will form the 2011 action plan to ensure strong, sustainable and balanced growth." The next meeting is in October.
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