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.
CANADIAN PRIME MINISTER STEPHEN HARPER
- On monetary and fiscal stimulus: 'There's a view coming out of this meeting, very strongly I can tell you ... that monetary policy alone will not be sufficient to take the global economy through this crisis. There will have to be fiscal action, and there will have to be additional fiscal action.' He said Canada was in a better position than many because it was running a budget surplus: 'We will do what we have to do to contribute to boosting global demand ... We'll obviously be looking at additional (fiscal) actions ourselves.'
- On reaching breakthrough in trade talks: 'That's going to be tough to do but certainly that's something that we believe is important.'
- On global power shift: 'It's the beginning of an unprecedented process where developed and developing countries will work together... It's reality. I think this reality is a change.'
- On how markets should view summit: 'The reason the declaration should give us all hope, and I would hope would give the markets reassurance, is the declaration is substantive, it is very complete, it has a concrete action plan, particularly on financial regulation, and it reflects a collaborative and deep comprehension by all leaders of major economies of the necessity of taking strong actions.'
- On aid to auto sector: 'We cannot ignore what the Americans do. On the other hand we as a government of Canada have to ultimately take our own actions and be convinced that those actions are not just in the best interests of the auto sector but in the best interests of the Canadian economy and Canadian taxpayers. So we are talking to our American counterparts and obviously listening to our industry and listening to our provincial colleagues in Canada.'
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 need for more U.S. stimulus: 'I believe the coordinated and concerted stimulus that people are talking about does include what is being proposed and about to be put to (the) Senate and Congress in the next few months by President-elect Obama.'
- 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.'
- On new Bretton Woods: 'It is the road to the new Bretton Woods. If you look at the conclusions of the document, it is absolutely clear that we are trying to build new institutions for the future.'
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.'
- On the communique language, he said: 'The need to take fiscal action is underlined by the gravity of this financial crisis.'
'Everyone recognizes there is a large challenge there to support growth and jobs in what will be a very challenging year in 2009.
- On IMF/World Bank: 'It doesn't make sense' to exclude emerging economies from the global financial bodies. 'The impact of financial crisis began in the developed economies. It has spread to developing economies, where it will be even worse.' He added: 'All major players in the global economy must be on the decision-making bus.'
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. 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.
CANADIAN PRIME MINISTER STEPHEN HARPER
- On monetary and fiscal stimulus: 'There's a view coming out of this meeting, very strongly I can tell you ... that monetary policy alone will not be sufficient to take the global economy through this crisis. There will have to be fiscal action, and there will have to be additional fiscal action.' He said Canada was in a better position than many because it was running a budget surplus: 'We will do what we have to do to contribute to boosting global demand ... We'll obviously be looking at additional (fiscal) actions ourselves.'
- On reaching breakthrough in trade talks: 'That's going to be tough to do but certainly that's something that we believe is important.'
- On global power shift: 'It's the beginning of an unprecedented process where developed and developing countries will work together... It's reality. I think this reality is a change.'
- On how markets should view summit: 'The reason the declaration should give us all hope, and I would hope would give the markets reassurance, is the declaration is substantive, it is very complete, it has a concrete action plan, particularly on financial regulation, and it reflects a collaborative and deep comprehension by all leaders of major economies of the necessity of taking strong actions.'
- On aid to auto sector: 'We cannot ignore what the Americans do. On the other hand we as a government of Canada have to ultimately take our own actions and be convinced that those actions are not just in the best interests of the auto sector but in the best interests of the Canadian economy and Canadian taxpayers. So we are talking to our American counterparts and obviously listening to our industry and listening to our provincial colleagues in Canada.'
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 need for more U.S. stimulus: 'I believe the coordinated and concerted stimulus that people are talking about does include what is being proposed and about to be put to (the) Senate and Congress in the next few months by President-elect Obama.'
- 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.'
- On new Bretton Woods: 'It is the road to the new Bretton Woods. If you look at the conclusions of the document, it is absolutely clear that we are trying to build new institutions for the future.'
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.'
- On the communique language, he said: 'The need to take fiscal action is underlined by the gravity of this financial crisis.'
'Everyone recognizes there is a large challenge there to support growth and jobs in what will be a very challenging year in 2009.
- On IMF/World Bank: 'It doesn't make sense' to exclude emerging economies from the global financial bodies. 'The impact of financial crisis began in the developed economies. It has spread to developing economies, where it will be even worse.' He added: 'All major players in the global economy must be on the decision-making bus.'
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. 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.