-To restore confidence, growth and jobs. This involves an "unprecedented and concerted fiscal expansion" amounting to $5 trillion (€3.7 trillion) by the end of next year.
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To repair the financial system to restore lending. An action plan agreed in Washington in November is to be implemented, establishing a new Financial Stability Board to collaborate with the International Monetary Fund (IMF).
-To strengthen financial regulation to rebuild trust. Regulation is to be extended to some hedge funds.
Regulatory oversight and registration will also be extended to credit-rating agencies.
The G20 also endorsed “tough new principles” on bankers’ pay.
In future, regulation will prevent “excessive” reliance on debt through leverage and require “buffers of resources” to be built up during good times.
Action will be taken against tax havens, including sanctions for those which refuse to comply with international norms.
-To fund and reform international financial institutions to overcome this crisis and prevent future ones. This involves trebling resources available to the IMF for lending to $750 billion, supporting a new $250 billion allocation of special drawing rights (SDR) which national governments can convert into currency with IMF approval, and at least $250 billion of support for trade finance. – (PA)
