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SUMMIT-FACTBOX-Who got what from G20 summit?

Published 04/02/2009, 02:57 PM
Updated 04/02/2009, 03:00 PM

April 2 (Reuters) - G20 nations had set sometimes competing priorities in the run-up to the London crisis summit. Following is a rundown of how the key players fared on the issues most vital to them.

FISCAL STIMULUS

Who wanted what: The United States, Britain and Japan had been strong proponents of concerted action around the world to pump more government funds into stimulus packages; France and Germany led calls to hold off, preferring to wait for results from funds already committed.

Result: The summit set no obligation for further fiscal measures, a fact greeted with satisfaction by Germany.

MARKET REGULATION

Who wanted what: France and Germany had been the most vocal in pressing for oversight of hedge funds, a cause that Chancellor Angela Merkel had pushed even before the financial crisis. Japan had said regulation should take second place to saving the world economy.

Outcome: Clear summit commitment to extend regulation and oversight to all systemically important financial institutions, instruments and markets. Credit rating agencies will also be covered.

BEEFED UP IMF

Who wanted what: Australia, Canada and South Africa were among those making the running for a big increase in IMF lending resources; Russia, Argentina, China, India, Saudi Arabia and others argued for reforms to give emerging economies more voting clout at the Fund.

Outcome: a tripling of IMF lending funds was more than had been expected, but less was said about the rebalancing of influence that the developing countries want.

TRADE

Who wanted what: Brazil and Britain had floated a figure of $100 billion for new credit lines for international trade.

Outcome: figure of $250 billion exceeded expectations.

PROTECTIONISM

Who wanted what: Britain, United States, South Korea, Canada and India had demanded that the G20 make strong commitments to free trade.

Outcome: Summit 'reaffirmed' commitment from previous summit last year to refrain from raising new barriers to investment and trade. In practice, however, many of the G20 countries have adopted protectionist measures since the Washington summit in November to defend domestic companies.

TAX HAVENS

Who wanted what: France and Germany were again the most vocal in demanding a crackdown on tax havens.

Outcome: summit agreed to blacklist 'non-cooperative jurisdictions' and consider sanctions.

RESERVE CURRENCY

Who wanted what: China and Russia wanted to discuss a new global reserve currency as an alternative to the dollar, based on IMF Special Drawing Rights.

Outcome: Topic was not discussed, but Russia issued its own statement.

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