The G20’s finance leaders are meeting in London to work out the best way forward for a global economy that appears to be healing.
While there is broad agreement that economic life-support packages must stay in place for now, clear differences remain on how to avoid another banking crisis. Germany and France look set to oppose a US plan to get banks to hold more capital. Institutional reform, especially in regard to the International Monetary Fund, is also a hot topic. Emerging economies are demanding a greater say. Brazil’s Finance Minister Guido Mantega said: “These institutions do not represent the importance of emerging countries in the world today. So we can have a more active participation in these institutions and put in more resources, it is necessary for us to have a redistribution of the quota system and more voice, so that the emerging countries can have a similar weight to those of the advanced countries.” Bankers’ bonuses are also likely to top the agenda. France is pushing for pay caps and taxes on bonuses to avoid reckless behaviour leading to future financial meltdowns, but it could face opposition. Today’s meeting in London comes ahead of a G20 summit in Pittsburgh later this month.