CASPER
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Harper hails G20 agreement as 'unprecedented' global response
By The Canadian Press
LONDON - G20 leaders pledged an additional US$1 trillion Thursday to restore credit, growth and jobs around the world, an agreement Prime Minister Stephen Harper hailed as an "unprecedented" consensus plan that will buoy confidence in the global economy.
The agreement, which includes a crackdown on tax havens, regulation of hedge funds and a new supervisory body to flag problems in the world financial system, is "very complete" and "very strong," Harper said during his closing news conference.
"This really is unprecedented, co-ordinated and fast action by the international community to an economic crisis, frankly at a speed and a level of engagement we have never seen in the past," Harper said.
"This is quite a significant achievement, and I do believe markets should take considerable comfort from this action. Obviously we're not out of the woods, but there is a very strong will on the part of all major nations to act on this and to co-ordinate those actions."
Canada's specific contributions include another US$10 billion for emergency International Monetary Fund assistance, and is putting $200 million into the trade fund.
Harper said that while the global recession is deeper than it was in November, there's still a lot of stability in the system and that an economic recovery is inevitable - the only question remains just when it will materialize.
During his own news conference, British Prime Minister Gordon Brown called the agreement the "day the world came together to fight back against the recession."
"Today the largest countries of the world have agreed on a global plan for economic recovery and reform," said Brown, who served as host of the summit.
Brown said credit agencies will be regulated to end conflicts of interest, tax havens will be forced to disclose their banking details and a new Financial Stability Board will be created to provide an "early warning mechanism that the global economy needs."
Finance Minister Jim Flaherty said in a statement that ensuring "the international flow of capital and strengthening international trade are critical to bringing the world out of a global economic crisis."
Earlier in the day, sources said Canada, France and Germany had persuaded the leaders to back tougher language in the final communique on regulating financial institutions and international oversight. Such language was considered the most problematic diplomatic hurdle at the summit.
Harper, according to his officials, told the morning session that fixing the international financial system must remain the group's top priority.
The result of the dramatic one-day gathering was swiftly praised by German Chancellor Angela Merkel and French President Nicolas Sarkozy.
Sarkozy praised U.S. President Barack Obama and Brown at the end of the meeting, despite having threatened earlier to walk out if unsatisfied with the outcome. The French leader said Obama helped in creating consensus and in persuading China to agree to publish lists of tax havens.
Sarkozy said Obama was a "very open man" and "completely in line with what we wanted: that politicians take their responsibilities."
European, U.S. and Canadian markets surged ahead Thursday as the outcome of the summit came into view.
While they did not announce any new stimulus measures - as some in the United States had hoped - Brown said the $1 trillion deal to boost funds for the International Monetary Fund, World Bank and other global institutions was unprecedented.
"For the first time we have a common approach to cleaning up banks around the world to restructuring of the world financial system. We have maintained our commitment to help the world's poorest," Brown said. "This is a collective action of people around the world working at their best."
The G-20 leaders also said that developing nations - hard-hit and long complaining of marginalization - a greater say in world economic affairs. They said they would renounce protectionism and pledged $250 billion in trade finance over the next two years - a key measure to help struggling developing countries.
The leaders also agreed to new rules on linking executive pay to performance, Brown said.
-With files from The Associated Press
By The Canadian Press
LONDON - G20 leaders pledged an additional US$1 trillion Thursday to restore credit, growth and jobs around the world, an agreement Prime Minister Stephen Harper hailed as an "unprecedented" consensus plan that will buoy confidence in the global economy.
The agreement, which includes a crackdown on tax havens, regulation of hedge funds and a new supervisory body to flag problems in the world financial system, is "very complete" and "very strong," Harper said during his closing news conference.
"This really is unprecedented, co-ordinated and fast action by the international community to an economic crisis, frankly at a speed and a level of engagement we have never seen in the past," Harper said.
"This is quite a significant achievement, and I do believe markets should take considerable comfort from this action. Obviously we're not out of the woods, but there is a very strong will on the part of all major nations to act on this and to co-ordinate those actions."
Canada's specific contributions include another US$10 billion for emergency International Monetary Fund assistance, and is putting $200 million into the trade fund.
Harper said that while the global recession is deeper than it was in November, there's still a lot of stability in the system and that an economic recovery is inevitable - the only question remains just when it will materialize.
During his own news conference, British Prime Minister Gordon Brown called the agreement the "day the world came together to fight back against the recession."
"Today the largest countries of the world have agreed on a global plan for economic recovery and reform," said Brown, who served as host of the summit.
Brown said credit agencies will be regulated to end conflicts of interest, tax havens will be forced to disclose their banking details and a new Financial Stability Board will be created to provide an "early warning mechanism that the global economy needs."
Finance Minister Jim Flaherty said in a statement that ensuring "the international flow of capital and strengthening international trade are critical to bringing the world out of a global economic crisis."
Earlier in the day, sources said Canada, France and Germany had persuaded the leaders to back tougher language in the final communique on regulating financial institutions and international oversight. Such language was considered the most problematic diplomatic hurdle at the summit.
Harper, according to his officials, told the morning session that fixing the international financial system must remain the group's top priority.
The result of the dramatic one-day gathering was swiftly praised by German Chancellor Angela Merkel and French President Nicolas Sarkozy.
Sarkozy praised U.S. President Barack Obama and Brown at the end of the meeting, despite having threatened earlier to walk out if unsatisfied with the outcome. The French leader said Obama helped in creating consensus and in persuading China to agree to publish lists of tax havens.
Sarkozy said Obama was a "very open man" and "completely in line with what we wanted: that politicians take their responsibilities."
European, U.S. and Canadian markets surged ahead Thursday as the outcome of the summit came into view.
While they did not announce any new stimulus measures - as some in the United States had hoped - Brown said the $1 trillion deal to boost funds for the International Monetary Fund, World Bank and other global institutions was unprecedented.
"For the first time we have a common approach to cleaning up banks around the world to restructuring of the world financial system. We have maintained our commitment to help the world's poorest," Brown said. "This is a collective action of people around the world working at their best."
The G-20 leaders also said that developing nations - hard-hit and long complaining of marginalization - a greater say in world economic affairs. They said they would renounce protectionism and pledged $250 billion in trade finance over the next two years - a key measure to help struggling developing countries.
The leaders also agreed to new rules on linking executive pay to performance, Brown said.
-With files from The Associated Press
