At their summit in London, G20 leaders have agreed on a plan to save the world’s finances.
They will pump an additional one trillion dollars into the troubled global economy through extra funding for groups like the International Monetary Fund. Summit host Britain’s Gordon Brown revealed action to “clean up” the banks – with new rules on pay and bonuses. He also announced a crackdown on international tax cheats: “We have agreed that there will be an end to tax havens that do not transfer information on request,” Brown said. “The banking secrecy of the past must come to end.” Brown talked about a new world order and managing the process of globalisation. “We believe that global problems require global solutions,” he said. Stressing the scale of the summit’s decisions, he told reporters: “G20 countries have announced and are now implementing the largest macroeconomic stimulus the world has ever seen. We are in the middle of a unprecedented fiscal expansion which will, by the end of next year, amount to an injection of five trillion dollars into our economies.” Despite pre-summit talk of differences between the US/UK approach and German/French proposals, the final plan turned out to be everybody’s cut of tea. Brown said that while there were “no quick fixes”, the agreements reached meant the recession can be shortened and jobs saved.