G-20 Leaders Pledge $1 Trillion to Beat RecessionLeaders at the G-20 summit on Thursday issued details of an unprecedented package of measures to tackle the global economic recession. The deal, which was agreed upon by the leaders of the world's 20 largest economies, included reform of the international banking system and an injection of more than $1 trillion into the world's financial system.
The push and pull between the stimulus-aimed U.S. and Britain against countries who favored more banking regulations came together to agree on the package. It is seen as great progress on financial institution reform, and is being described as an historic compromise.
The six-point plan includes bank reform measures, the $1 trillion to restore credit, growth and jobs, and also has measures to cut down on tax havens, as well as a commitment to creating a green, sustainable economy.
Much of the G-20 communiquÃ© (PDF) issued at the end of the London summit restated promises and goals that international leaders had made earlier, relying on language such as "we remain committed" and "we reaffirm our historic commitment."
The six-point consensus consisted of measures to:
The G-20 will meet again later in the year to review the success of its plans and further details of the summit will be announced in the next few days.
The G-20 members say they will also establish a new Financial Stability Board to provide "early warning of macroeconomic and financial risks," the summit's final communiquÃ© says. It is not clear if the board would have regulatory powers.