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The Hellenic Radio (ERA): News in English, 09-09-25
From: The Hellenic Radio (ERA) <www.ert.gr/>
 G20 Agrees on New RoleNews
Last Updated on Friday, 25 September 2009 19:23
The G20 leaders reached a historic agreement to put the G20 at the centre of their efforts to work together to build a durable recovery while avoiding the financial fragilities that led to the crisis. The G20 leaders meeting in Pittsburg has reached an agreement on limiting bonuses in financial institutions, although no formal cap on individual bonuses has been confirmed. Meanwhile, a deal was also reached to redress the balance of voting in the IMF of some developing countries to the benefit of countries represented in the organization. Over 4.000 police and soldiers are patrolling Pittsburg and erected steel barricades to be used for crowd control. Security forces used tear gas and rubber bullets to disperse demonstrators.
The Group of 20 will become the forum for global economic management, giving rising powers such as China more clout, and roll out tougher rules on bank capital by the end of 2011, a draft communiquĂ© said on Friday. It also tackled the contentious issue of bankers' pay
schemes, blamed for fostering a high-risk corporate culture that led to heavy losses and taxpayer-funded bailouts.
The document suggested linking pay to "long-term value creation, not excessive risk-taking".
However, it did not mention direct caps on pay as proposed by some European leaders
The G20 unexpectedly moved close to a deal shifting more voting power at the International Monetary Fund to some developing countries, recognizing their growing clout. In return, the draft communique suggested, the G20 won their commitment to do their part in rebalancing the world economy.
According to French delegation spokesman, the G20, the world's 20 biggest economies, are to meet twice in 2010, in Canada and South Korea.
Sources: Reuters, ÁNA-ĚPA
BBC: Emerging economies 'get new role'
News item: 27120