G20 finance ministers have agreed a series of measures to curb the bankers’ bonus culture And, at the end of a two-day meeting in London, they also pledged to keep economic life-support policies in place until recovery from recession is certain.
The proposals for reining-in excessive bonuses focus on deferrals in order to reward long-term success rather than short-term risk taking. “I hope we are going to enter an era where we do not have again a situation where people are being rewarded for reckless behaviour, or behaviour that could endanger the health of the banks they work for, and therefore, by extension, the health of the countries in which these banks operate,” said British Chancellor Alistair Darling. The IMF has now collected pledges for a 350 billion euro additional loan facility agreed in principle at the G20 London summit in April, with Mexico, India and Singapore all chipping in. But unemployment could still derail economic recovery. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund, said: “Let us imagine the worker in Germany, France or in the US, or anywhere in the world, who is going to lose his job in November. The crisis is in front of him. And, for so many people around the world, because of rising unemployment for rather a long period of time, the crisis is still there.” Across the 27 member-state European Union, unemployment has risen to nine percent of the workforce, from 8.9 percent in June. That is an increase of 225,000 to 21.794 million people. And in the United States the jobless rate climbed to 9.7 percent in August, the highest since June 1983.