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G20 vows to spur fragile growth | G20 vows to spur fragile growth |
(10 minutes later) | |
Finance ministers from developing and rich countries meeting in Scotland have pledged to keep stimulus measures in place until global recovery is assured. | |
A statement issued after the G20 meeting says the recovery is "uneven" and remains dependent on support, while unemployment is a "major" concern. | A statement issued after the G20 meeting says the recovery is "uneven" and remains dependent on support, while unemployment is a "major" concern. |
Earlier, British PM Gordon Brown called for a fund for bank bailouts, possibly paid for by a tax on transactions. | Earlier, British PM Gordon Brown called for a fund for bank bailouts, possibly paid for by a tax on transactions. |
The G20 ministers also promised to take action to tackle climate change. | The G20 ministers also promised to take action to tackle climate change. |
After the meeting in St Andrews, US Treasury Secretary Tim Geithner said there was a "very broad consensus that growth remains the dominant policy imperative across our economies". | |
Earlier, British Chancellor of the Exchequer Alistair Darling said that although the threat of a downturn had receded, it was too early to withdraw emergency support. | |
"There is no one who believes the job is yet done," he said. | "There is no one who believes the job is yet done," he said. |
The G20 statement said: "The recovery is uneven and remains dependent on policy support, and high unemployment is a major concern. | The G20 statement said: "The recovery is uneven and remains dependent on policy support, and high unemployment is a major concern. |
"To restore the global economy and financial system to health, we agreed to maintain support for the recovery until it is assured." | "To restore the global economy and financial system to health, we agreed to maintain support for the recovery until it is assured." |
Earlier, Mr Brown called for a new "social contract" with the world's banks to make them more responsible to society. | Earlier, Mr Brown called for a new "social contract" with the world's banks to make them more responsible to society. |
He said the financial sector was so key that governments had no choice but to step in when it failed. | He said the financial sector was so key that governments had no choice but to step in when it failed. |
He added: "And it cannot be acceptable that the benefits of success in this sector are reaped by the few but the costs of its failure are borne by all of us." | He added: "And it cannot be acceptable that the benefits of success in this sector are reaped by the few but the costs of its failure are borne by all of us." |
Mr Brown admitted there would be "enormous and difficult practical and technical issues" but a "better social contract" was needed with banking systems to make them more responsible. | Mr Brown admitted there would be "enormous and difficult practical and technical issues" but a "better social contract" was needed with banking systems to make them more responsible. |
He said it could be funded in a number of ways, including a global levy on transactions. | He said it could be funded in a number of ways, including a global levy on transactions. |
Other options, he said, were an insurance scheme, a global "resolution fund" or a contingent capital arrangement. | Other options, he said, were an insurance scheme, a global "resolution fund" or a contingent capital arrangement. |
The UK has in the past been opposed to transaction levies, known as Tobin taxes, believing they could damage the interests of the City of London. | The UK has in the past been opposed to transaction levies, known as Tobin taxes, believing they could damage the interests of the City of London. |
'Step forward' | 'Step forward' |
The BBC's Joe Lynam, in Saint Andrews, says Mr Brown's calling for an insurance levy or transaction tax took many delegates by surprise. | The BBC's Joe Lynam, in Saint Andrews, says Mr Brown's calling for an insurance levy or transaction tax took many delegates by surprise. |
Sources close to the Canadian and American delegations suggest their response could be lukewarm, our correspondent says. | Sources close to the Canadian and American delegations suggest their response could be lukewarm, our correspondent says. |
Mr Brown urged a "just distribution of risks and rewards" | |
The British Bankers' Association quickly cast doubt on the effectiveness of such financial transaction levies. | The British Bankers' Association quickly cast doubt on the effectiveness of such financial transaction levies. |
Chief executive Angela Knight said: "[They] don't work as they require perfect or near-perfect global implementation." | Chief executive Angela Knight said: "[They] don't work as they require perfect or near-perfect global implementation." |
But a senior policy adviser for Oxfam, Max Lawson, said he would welcome a tax on banks as "a major step towards clearing up the mess caused by their greed". | But a senior policy adviser for Oxfam, Max Lawson, said he would welcome a tax on banks as "a major step towards clearing up the mess caused by their greed". |