WASHINGTON, Nov 15 (Reuters) - Leaders of advanced and major developing countries agreed on Saturday to act rapidly to restart growth, regulate finance and give emerging markets more say in running the world economy.
Below are comments they made after the Group of 20 released its communique on financial markets and the world economy.
BRITISH PRIME MINISTER GORDON BROWN
On fiscal stimulus: 'A coordinated and concerted stimulus through the use of budget measures to support demand in our economies. I believe we will see many countries follow this lead in the next few weeks.'
On global trade talks: 'This is the first time that a meeting of leaders has instructed the trade negotiators and I believe that we are determined now that we have an agreement within the next few weeks.'
'We are instructing our trade negotiators to reach an agreement by the end of the year.'
AUSTRALIAN PRIME MINISTER KEVIN RUDD
'The Australian government remains determined to take whatever additional action is necessary to support growth and jobs in what will be a very difficult year for the global economy.'
GERMAN CHANCELLOR ANGELA MERKEL
On world trade talks: 'If there is the political will, it would be good if we could reach an agreement in the Doha round with the present U.S. administration.'
BRAZILIAN FINANCE MINISTER GUIDO MANTEGA
'Brazil has achieved its goal of solidifying the G20's role as the best locus of international economic decision making.'
FRENCH PRESIDENT NICOLAS SARKOZY
'All the countries made an appeal for a concerted relaunch' of the world economy. 'It's a message we are sending to the markets.'
WTO DIRECTOR GENERAL PASCAL LAMY
Statement from Geneva: 'This high-level commitment to enhance the global trading system is vital to the success of our negotiations. What we need now is for this strong show of support to be translated into action at the negotiating table in Geneva.'
U.S. PRESIDENT GEORGE W. BUSH
- On growth: 'There was a common understanding by all of us that we should take pro-growth economic policies.'
- On free markets: He said leaders agree that reforms must be made 'without destroying the incentive to innovate, without destroying the marketplace. We also agreed that we must make the market place more accountable. Transparency is very important because investors must know the truth.'
'Whatever we do, whatever reforms are recommended, we need to be guided by this simple fact -- that the best way to solve the problem is economic growth, and the surest path to this grown is free market capitalism.'
- On regulations: 'We agreed that we must improve regulations ... for example CDS, credit default swaps, should be processed through central clearing houses. That is a significant reform. Before they were trading OTC, in open markets.'
- On global financial governance: 'These institutions have been very important -- the World Bank and the IMF. But they were based on an economic order of 1944. The World Bank and the IMF should modernize their governance structure. They should consider extending voting powers and government structures... particularly to those that have increased their funding.'
- On further meetings:
'It makes sense to come out of here with a firm action plan, which we have, and it also makes sense to say to people that there is more work to be done, and there will be more meetings.'
- On trade talks: 'The temptation is in times of economic stress is to say that 'Trade is not worth it. Let's throw up economic barriers.' But that was rejected.' He said they would seek to get a breakthrough on the Doha round of trade talks by the end of December.
MEXICAN PRESIDENT FELIPE CALDERON
'A decisive fiscal impulse will be essential to compensate and mitigate the expected reduction in private aggregate demand. It would be desirable to aim for coordinated fiscal responses, so as to maximize the impact on world economic growth. In addition, those countries which still have margin to adjust the stance of monetary policy should do so, and every country needs to maintain an adequate degree of liquidity to facilitate the massive adjustment process of balance sheets that needs to take place.'
'The International Financial Institutions must adopt a much more active role, supporting emerging and less developed countries so that the impact on economic activity and poverty is minimized.'
'Even though the (IMF's) Short-Term Liquidity Facility that has just been approved is an important improvement in terms of pre-qualification and no conditionality, its short maturity and high cost makes it of limited interest to the solid emerging markets that could qualify for it.'
Keywords: FINANCIAL/SUMMIT HIGHLIGHTS (Reporting by G20 reporting team. Washington newsroom, +1 202 898 8310) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Below are comments they made after the Group of 20 released its communique on financial markets and the world economy.
BRITISH PRIME MINISTER GORDON BROWN
On fiscal stimulus: 'A coordinated and concerted stimulus through the use of budget measures to support demand in our economies. I believe we will see many countries follow this lead in the next few weeks.'
On global trade talks: 'This is the first time that a meeting of leaders has instructed the trade negotiators and I believe that we are determined now that we have an agreement within the next few weeks.'
'We are instructing our trade negotiators to reach an agreement by the end of the year.'
AUSTRALIAN PRIME MINISTER KEVIN RUDD
'The Australian government remains determined to take whatever additional action is necessary to support growth and jobs in what will be a very difficult year for the global economy.'
GERMAN CHANCELLOR ANGELA MERKEL
On world trade talks: 'If there is the political will, it would be good if we could reach an agreement in the Doha round with the present U.S. administration.'
BRAZILIAN FINANCE MINISTER GUIDO MANTEGA
'Brazil has achieved its goal of solidifying the G20's role as the best locus of international economic decision making.'
FRENCH PRESIDENT NICOLAS SARKOZY
'All the countries made an appeal for a concerted relaunch' of the world economy. 'It's a message we are sending to the markets.'
WTO DIRECTOR GENERAL PASCAL LAMY
Statement from Geneva: 'This high-level commitment to enhance the global trading system is vital to the success of our negotiations. What we need now is for this strong show of support to be translated into action at the negotiating table in Geneva.'
U.S. PRESIDENT GEORGE W. BUSH
- On growth: 'There was a common understanding by all of us that we should take pro-growth economic policies.'
- On free markets: He said leaders agree that reforms must be made 'without destroying the incentive to innovate, without destroying the marketplace. We also agreed that we must make the market place more accountable. Transparency is very important because investors must know the truth.'
'Whatever we do, whatever reforms are recommended, we need to be guided by this simple fact -- that the best way to solve the problem is economic growth, and the surest path to this grown is free market capitalism.'
- On regulations: 'We agreed that we must improve regulations ... for example CDS, credit default swaps, should be processed through central clearing houses. That is a significant reform. Before they were trading OTC, in open markets.'
- On global financial governance: 'These institutions have been very important -- the World Bank and the IMF. But they were based on an economic order of 1944. The World Bank and the IMF should modernize their governance structure. They should consider extending voting powers and government structures... particularly to those that have increased their funding.'
- On further meetings:
'It makes sense to come out of here with a firm action plan, which we have, and it also makes sense to say to people that there is more work to be done, and there will be more meetings.'
- On trade talks: 'The temptation is in times of economic stress is to say that 'Trade is not worth it. Let's throw up economic barriers.' But that was rejected.' He said they would seek to get a breakthrough on the Doha round of trade talks by the end of December.
MEXICAN PRESIDENT FELIPE CALDERON
'A decisive fiscal impulse will be essential to compensate and mitigate the expected reduction in private aggregate demand. It would be desirable to aim for coordinated fiscal responses, so as to maximize the impact on world economic growth. In addition, those countries which still have margin to adjust the stance of monetary policy should do so, and every country needs to maintain an adequate degree of liquidity to facilitate the massive adjustment process of balance sheets that needs to take place.'
'The International Financial Institutions must adopt a much more active role, supporting emerging and less developed countries so that the impact on economic activity and poverty is minimized.'
'Even though the (IMF's) Short-Term Liquidity Facility that has just been approved is an important improvement in terms of pre-qualification and no conditionality, its short maturity and high cost makes it of limited interest to the solid emerging markets that could qualify for it.'
Keywords: FINANCIAL/SUMMIT HIGHLIGHTS (Reporting by G20 reporting team. Washington newsroom, +1 202 898 8310) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.