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G20 claims major step forward with plan

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G20 claims major step forward with plan

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In order to avoid a repeat of the global financial crisis the G20 nations have decided to put the policies of seven of its members, the US, China, Britain, Germany, France, India and Japan under the microscope. The IMF will seek out imbalances in debt, trade, and budget deficits, although its conclusions will not be binding on members.

“The guidelines operate a little bit like a net which actually holds those of the countries that violate or do not respect the guidelines and the net is a little bit tighter for those countries that are considered of systemic importance because they represent more than five percent of the GDP of the G20”, said French Finance Minister Christine Lagarde.

The plan is designed to identify risk factors for the global economy, and the G20 claims that as part of a new early-warning system it represents a major victory for the G20 after months of political argument.