World leaders claim to have struck an historic deal to combat the global recession following the G20 summit in London.
A whole raft of measures has been agreed to tackle the worst economic downturn since the Great Depression. The most notable is a 750 billion euro cash boost for the International Monetary Fund to assist those countries hit hard by the financial crisis. US President Barack Obama said he was pleased with the outcome of what was his first major appearence on the world stage. “We made enormous strides in committing ourselves to comprehensive reform of a failed regulatory system,” he said. “And together, I believe that we must put an end to the bubble-and-bust economy that has stood in the way of sustained growth and enabled abusive risk-taking that endangers our prosperity.” Russian President Dmitry Medvedev said that his talks with Obama went someway to diffusing tensions between Moscow and Washington. However, the thorny issues of NATO enlargement and a planned US missile shield remain bones of contention. As part of the new world financial order, the G20 has announced a blacklist and a seperate greylist of those countries that fail to comply with internationally-agreed financial standards. The G20 has asked the European economic think-tank, the OECD, to report back on tax haven cooperation by the November meeting of economic ministers in Scotland. If they fail or refuse to cooperate, they face international sanctions.