Francis Elliott in Washington
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Gordon Brown claimed that world leaders have agreed a “route map to global economic recovery” at the conclusion of the G20 summit in Washington yesterday.
The leaders of the world’s 20 leading economies promised to instruct their ministers to seek a new Doha trade deal by the end of the year and to co-ordinate interest rate and tax cuts to soften the severity of the global recession.
They also agreed new international regulations of banks to be finalised at a second summit, possibly in the UK, in March next year.
The communiqué released at the end of the Washington summit said that more action was needed to address the “serious challenges to the world economy and financial markets.”
World leaders agreed the need for “closer macroeconomic co-operation” and said there was an immediate requirement to “use fiscal measures to stimulate domestic demand to rapid effect.”
The wording will help Mr Brown and Alistair Darling, the Chancellor, defend a package of giveaways to be unveiled in the pre-Budget report a week on Monday. Mr Brown yesterday gave a heavy hint that he intends to raise tax credits for lower income workers to help Britain’s faltering economy.
Mr Brown said that while it was up to each country to decide what to do the coming days would see “co-ordinated and concerted budget measures” announced around the world.
The Prime Minister was able to claim success, also, on winning agreement for measures such as the new supervisory college of regulators to oversee cross-border financial institutions.
Reforms to the International Monetary Fund and World Bank will be discussed at the second G20 economic summit next year. Britain, as the G20 leader in 2009 will take a lead in setting the meeting’s agenda.
At a press conference in the immediate aftermath of the summit Mr Brown drew attention to the passage of the communiqué relating to stalled world trade round. A new World Trade Round by the end of the year would help usher in the “open and inclusive form of globalisation” needed to prevent a damaging wave of protectionism, he said.
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It's diffucult situation. They don't know a remedy, although they are speaking and smiling a lot, and ansure that everything will be fine.
massimo, genova, italy
They sure said a lot for really only saying "we know what happened but we have no idea of what to do so we better all go home and scratch our heads some more."
It's becoming more and more apparent that although they got us into this mess, they have no idea how to get us out.
Scott, Durham, NC, USSA
What Brown and America should do, is ask the German's for a loan , so that we can buy their exports. That will be provide some jobs for our service industry and the next generations can pay for it.
A Walton, Leicester, England
Brown claims success from every meeting he attends but still the country is in the soup. All blow and bluster.
albert hall, hove, england
I believe the Wall Street Journel, which said a lot was talked about but nothing firm was achieved. Bascially, Brown is singing a lot of hot air again. As for the Pound, the Chamber of Commerce has also warned of the dangers of the Pound plunging due to Brown's proposed tax cuts and more borrowing
chris, woodbridge, england
He would say that anyway. They probably wrote the script before he set off for Heathrow. If he doesn't cut stamp duties and fees by 9am tomorrow we are deep in the proverbial
Sue Doughty, Twyford, UK
the g20 never agreed to browns tax cuts in washington,they all agreed to do their own thing to suit their own circumstances,and most thought browns idea of spending their way out of a recession was crazy,and brown was accused od electioneering.
thomas, wallasey, uk
Totally different write up in American papers, even when they bother to mention Gordon Brown.
gerry, exeter, england
What the world needs are the people who report to the *experts* to do THEIR work .
Jim, Sidcup,
I'm setting up a new church in which we worship this new god called "Gordon" and make sacrificial offerings of huge portions of our salaries - anyone want to join? Oops - too late. It's already been done and the news media are his disciples, telling of his miracles wherever his holy feet tread.
John Tomlinson, Brentwood, Essex
I think the idea of cutting taxes is probably the most irresponsible financial measure one can take now - it is supposed to stimulate the world economy - and restore
the speculation game - but the US and the UK should do the
exact opposite - more taxes, regulate so as to prevent recession.
Stephen Pain, Odense, Denmark
What the world needs is a global bankruptcy reorganization and a devaluation of all paper or national currencies against money or gold. Gold has been a stable unit of value for over two thousand years. Politicians and bankers have to have the courage to reinstitute a sound monetary system.
Mario, London,
Came across this quote from the NYTimes.s
This is plain-vanilla stuff they could have agreed on without holding a meeting, said Simon Johnson, an economist at the Massachusetts Institute of Technology and a former chief economist of the International Monetary Fund. Whats new, except that this is the G-20 instead of the G-7?
rogerb, bridport, uk
Yet more verbose grandiosity from our favourite waffler. It may sound good but make no mistake. He will not have thought it out and prbably does not understand any of it himself.
William Vernon, Northampton, UK
The objective of our Leader, as always, was to get a headline. All this 'agreement' stuff had already been agreed.
john problem, Hackney Wick, UK
Not much!!!....too late!!!
k. black, bedford, uk
Spend don't lend.
G20 will have been a success only if Asian exporters and Oil producers have agreed to spend the cash pile they have built up. Lending it, will postpone but increase the problem. The imbalance and lack of demand is due to them lending not spending.
N Reed, London, UK
It is good to see my PM, Kevin Rudd, and Brown working together. Behind the scenes the old Commonwealth is working well particularly UK, AUS, CAN and NZ.
Dave, Brisbane, Australia
So Gordon is going to increase Tax Credits for low income workers :- If you've lost your job you don't get Working Tax credits. Low income work equals new immigrant labour, ok for them.
Hopefully the 'Route map' is not a satnav with a cliff face programmed in along the way.
John Davies, Preston , disintegrating UK
It was interesting to note that when the photo call was taken Gordon Brown was in a minor postion in the back row.
Doesn't this tell you something?
V. Cooper, Somerset, UK
A friend in Finance based in Monaco has 20 clients that fly in to Nice and place their millions in off-shore accounts. He works as an intermediary for the banks from Leichtenstein and Monaco as a cover. "Times are tough"he said "i'm worried about new controls" and loosing his Merc SLR AMG!
Gary lawrence, montpellier, france
Great that the present decision makers agreed to agree and meet again next Spring by which time half the world will be out of work. Mr Obama promised drastic economic reforms and patiently waits in the wings to come onto the world stage in January. Let's hope his performance matches the rehearsal.
peterfieldman, paris, france
GOD help us, that's all i can say.
Steve, Hatfield, UK
So what is agreed is that everyone will borrow more money and dig an ever deeper hole of debt. These people should read cynicus economicus, who points out why this is so foolish. Debt caused the problem, and apparently more debt is the solution? It will bankrupt the UK.
David Evans, Bath, UK
Obama campaigned on raising taxes for those who have money and now the world needs to save itself by lowering taxes and stimulating the economy. Can't have it both ways. The new guy is toast before he takes office. Class warfare - like all things - is a two way street. Bush skunked him. I love it.
Steven Gomprecht, Lodi, NY, USA
They try every way possible to "globalise", meaning "to control". But I hope they are stopped before they go any further. Like Rome they will fall.
Giancarlo, London, England
So an economic crisis caused by unsustainably high levels of borrowing is to be 'cured' by more high levels of borrowing.
Paul, Coventry,
""boost the global economy through tax cuts, higher public spending and lower interest rates""
I know Gordon has no problem with "higher public spending" - but this "tax cuts" talk must really be a battle with Browns conscience - he will end up reducing them to the level the Tories were at !!
Richard Garland, Manchester, Greater Manchester
*Id like to see the West wise enough to put an effort into gearing up for the wars that traditionally follow economic crisis.
National service preparations amongst Western nations wouldnt be all that out of place as conflicts slowly spread around the world. Anything could trigger bigger conflict?
G.Gibson, Sydney NSW, Australia
Banquo's ghost - Obama - didn't make an appearance so it's all been a fake tragedy.
Never mind, Brown got 10 second slots on the main news channels so that's a bit of a result.
Michael, London,