Main points of G20 summit communique

4th November 2011, Comments 0 comments

Here are excerpts of the main points of the final communique issued at the end of a two-day summit of leaders of the Group of 20 most powerful economies.

GROWTH AND JOBS

- Advanced economies commit to adopt policies to build confidence and support growth and implement clear, credible and specific measures to achieve fiscal consolidation.

- Countries with large current account surpluses commit to reforms to increase domestic demand, coupled with greater exchange rate flexibility.

SOCIAL ISSUES

- We are determined to strengthen the social dimension of globalisation. We firmly believe that employment and social inclusion must be at the heart of our actions and policies to restore growth and confidence.

- We recognise the importance of social protection floors in each of our countries, adapted to national situations

STRENGTHENING THE INTERNATIONAL MONETARY SYSTEM

- We have made progress in reforming the international monetary system to make it more representative, stable and resilient.

- To adjust to currencies' changing role and characteristics over time, the composition of the (IMF's) SDR basket will be reviewed in 2015, or earlier, as currencies meet the existing criteria to enter the basket.

- ... to move more rapidly toward more market-determined exchange rate systems and enhance exchange rate flexibility to reflect underlying economic fundamentals, avoid persistent exchange rate misalignments and refrain from competitive devaluation of currencies.

- We will ensure the IMF continues to have resources to play its systemic role to the benefit of its whole membership...

FINANCIAL SECTOR REFORM

- We have agreed on comprehensive measures so that no financial firm can be deemed "too big to fail" and to protect taxpayers from bearing the costs of resolution.

- We will not allow a return to pre-crisis behaviours in the financial sector and we will strictly monitor the implementation of our commitments regarding banks, OTC markets and compensation practices.

COMMODITY PRICE VOLATILITY AND AGRICULTURE

- We agree that market regulators should be granted effective intervention powers to prevent market abuses.

- Promoting agricultural production is key to feed the world population.

FINANCIAL TRANSACTION TAX

- We acknowledge the initiatives in some of our countries to tax the financial sector for various purposes, including a financial transaction tax, inter alia to support development.


© 2011 AFP

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