ITUC/TUAC Evaluation of the Outcome of the G20 London Summit
07/04/2009
Overview
Jobs and social issues moved up the agenda in the communiqué of the G20 London Summit by comparison with the November 2008 G20 Summit and with earlier drafts of the G20’s communiqué. The International Labour Organisation (ILO) will take part in follow-up to the summit, having been asked to assess the actions being taken by the G20 on employment.
The Summit also supported further discussion on a “charter” as proposed by Chancellor Merkel and others to achieve a new global consensus on the key values and principles for sustainable economic activity. 1.1 trillion dollars of largely new funding was agreed for major lending facilities, including Special Drawing Rights - the bulk of which will go to the IMF. However, no new money was agreed for further global stimulus packages.
Forward agreement was reached to strengthen international financial regulation, including that of “systemically important” hedge funds; however this is to be in the hands of an expanded Financial Stability Forum – renamed as a “Board” but itself made up of central bankers. This remains far short of trade union proposals for supra-national regulatory authorities, or the “World Finance Organisation” proposed by the French President. An agreement was reached to take action against “non-cooperative” tax havens as identified by the OECD if necessary through sanctions.
Leaders agreed to meet again before the end of 2009 “to review progress on our commitments”, hence reinforcing the principle of multilateral cooperation and action on global economic issues. It is likely that this will take place in September in New York around the meeting of the General Assembly of the United Nations.
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