09 November 2009

G20 agreed to maintain support for recovery

Economic recovery is uneven and remains dependent on policy support, G20 members noted. They initiated a “new approach to economic cooperation” including an assessment process and calls for internationally consistent resolution plans by end 2010.

“We agreed to maintain the support for the economic and financial recovery until it is assured”, the G20 Finance Ministers and Central Bank Governors said in their final communiqué on 7 November.

 

The G20 launched the “Framework for Strong, Sustainable and Balanced Growth”, adopted a detailed timetable and initiated a new consultative mutual assessment process to evaluate whether our policies will collectively deliver our agreed objectives, they said.

 

Basically, G20 agreed to set out their policy frameworks, programmes and projections by the end of January 2010.

 

In April 2010, the ‘initial phase of the cooperative mutual assessment process’ should begin. Policy options should then be considered at the next Summit in June 2010.

 

More specific policy recommendations should be developed not until the Summit in November 2010.

 

However, ministers also reiterated ensure the implementation and a level playing field, in particular:

• to strengthen prudential regulation, with the Basel Committee to develop stronger standards by end-2010, with the aim of implementation by end-2012.

• to ensure that compensation policies, my incorporating the FSB standards into the national frameworks. The FSB will report on the progress by March 2010;

• calls for the rapid development of internationally consistent, firm-specific recovery and resolution plans and tools by end-2010.

 

Full communiqué

Progress report

 

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