Local view for "http://purl.org/linkedpolitics/eu/plenary/2009-04-23-Speech-4-343"
| Predicate | Value (sorted: default) |
|---|---|
| rdf:type | |
| dcterms:Date | |
| dcterms:Is Part Of | |
| dcterms:Language | |
| lpv:document identification number |
"en.20090423.62.4-343"2
|
| lpv:hasSubsequent | |
| lpv:speaker | |
| lpv:spoken text |
".
Mr President, the results of the London G20 Summit are substantial. They provide a clear message of global unity to work together to get the world economy out of the current crisis and back on the path of economic growth and job creation.
We also welcome the recent announcement by several countries to move towards the OECD standards on the exchange of information for tax purposes. Overall, concerning financial regulation, more progress has been made now than over the whole of the last decade.
Thirdly, it was agreed to reform the international financial institutions to ensure strong institutions for the global economy and provide appropriate representation for emerging and developing countries. It was agreed to substantially increase IMF resources, and the EU and its Member States have been steering the process and showing the way in this regard. Some countries have followed the EU and Japan’s lead in pledging resources to the IMF, but more pledges are necessary, in particular from the United States and China.
Next, it is essential that the decisions taken by the G20 are delivered rapidly. We should also keep in mind to build a more balanced world economy and to avoid past mistakes. A fundamental adjustment of the global growth model – I am referring to the huge US budget deficit and the big Chinese trade surplus – may be needed in order for the global economy to return to a sustainable growth path.
The leaders agreed to meet again before the end of this year, probably in September. Effective coordination will be necessary to allow Europe to continue to steer the G20 process, which should be our continuous objective.
To conclude, tackling the current crisis requires both effective and coordinated fiscal stimulus and reform both of financial regulation and the international institutions.
Let us recall that this crisis originated from excesses and greed in the financial markets, especially on Wall Street. For Europe, it is a matter of returning to the basic values of the European model, which requires combining entrepreneurial initiatives, respect for productive work and striving for solidarity. In other words, our common challenge now is to save the European social market economy from the systemic errors of financial capitalism.
The G20 focused on three broad lines of action, and I am here today substituting for my colleague, Joaquín Almunia, who is driving those action lines further in a major IMF meeting today in Washington, and is thus unable to participate in this part-session.
Let me provide you with the Commission’s concise assessment of the outcome, and of subsequent actions concerning these three broad action lines.
First, it is clear that the leaders agreed to do whatever it takes to restore growth, and for the moment the first and foremost priority is to restore the channels for credit flows. In this respect it is necessary to deal with impaired, toxic assets, thus endorsing the principles that the G20 finance ministers adopted in March, which is fully in line with the approach taken by the European Union.
It was also agreed to implement the announced economic stimulus measures without delay, and the EU’s coordinated fiscal stimulus of over 3% – maybe closer to 4% – of GDP is substantial for Europe itself and provides a key contribution to the G20 short-term macroeconomic response to the crisis.
The outcome of the G20 should ensure an adequate balance between short-term fiscal expansion, which is, of course, necessary, and long-term fiscal sustainability, which calls for an orderly withdrawal of the stimulus when the time comes. Here also, the European consensus on the need to protect medium-term fiscal sustainability contributed to the balanced line adopted in London.
Trade protectionism is a potential threat in any global recession. It was therefore important that the G20 confirmed the commitment to keep trade and investment open and to avoid any kind of protectionism.
The second line of action is an ambitious plan to reshape global financial regulation, and it was agreed that, in future, regulations need to apply to every bank, everywhere, at all times. The G20 took a major step towards the global regulatory convergence that Europe has long been calling for.
We succeeded in obtaining the following objectives: improved requirements for bank capital and liquidity buffers, as well as measures to limit the build-up of leverage; regulation of hedge funds and private pools of capital; agreement on better regulation and supervision of credit derivative markets; more ambitious regulation for credit rating agencies; the establishment of global colleges of supervisors for all large cross-border banks; and endorsement of the new principles of the Financial Stability Board on executive pay and bonuses in financial institutions. Decisive action was also agreed on non-cooperative offshore tax havens. Thus, in the future there should be no hiding place in any part of the world for fiscal free riders. We welcome, in particular, the reference to the end of banking secrecy."@en1
|
| lpv:unclassifiedMetadata | |
| lpv:videoURI |
Named graphs describing this resource:
The resource appears as object in 2 triples