02/04/2009

The communiqué released this afternoon at the closure of the second G20 Summit in London reinforces IMF leadership in mitigating the impact of the global financial crisis. G20 leaders agreed to triple IMF core resources (to reach $750bn) to help “finance counter-cyclical policies” in developing countries and emerging markets. The Summit also made some progress in clamping down on the shadow financial system. A breakthrough agreement was obtained on tax havens which would see the OECD tax haven watch list to be linked to economic and financial sanctions. New commitments are also made with regard to regulation of hedge funds “of systemic size”, while bankers’ and their traders’ remuneration schemes should fall under closer supervision by financial authorities.

Responding to trade union pressures and to the outcome of the G8 Employment & Labour Ministers’ Summit in Rome on 29-31 March, the G20 also acknowledges the role of ILO in ensuring close monitoring of measures to support employment and active labour market policies. Yet, compared with the $1tr new funding announced for IMF and other IFI facilities, the G20 communiqué is weak on the needed efforts to ensure robust recovery plans with immediate impact on jobs. Other than a broad commitment to “raise output by 4%” by end 2010, no new money is on the table to help support further stimulus packages for working families.

Similarly, the much needed consolidation and global financial markets is in the unknown. The replacement of the opaque Financial Stability Forum by a new “Financial Stability Board” would be welcome as long as enhanced representation would include not only G20 members but also ensure full stakeholder involvement. The G20 Summit makes implicit support to the Merkel-Tremonti initiative for a global “legal charter” which would combine key standards of the “big five” institutions OECD, ILO, WTO, WB, IMF. This support needs to be confirmed in the next steps of the G20 process.

Further in-depth analysis will soon be provided by TUAC in partnership with ITUC and Global Unions.

related news and links

• 02/04/2009| Real progress at summit, says TUC
• 02/04/2009| G20 Communiqué, Annex Declaration on strengthening the financial system & Annex Declaration on international financial institutions
• 02/04/2009| OECDsite: Following G20 OECD delivers on tax pledge & progress report on the jurisdictions survey
  
  
• 23/03/2009| Global Unions London Declaration - Statement to the London G20 Summit
• 23/03/2009| Trade Unions to G20: Half Measures Will Not Fix 
• 23/03/2009| Global crisis: list of trade union statements and press releases
• 15/03/2009| A “Global Charter”/“Legal Standard”: An Inventory Of Possible Policy Instruments, A Joint Stock-Taking Exercise & 05/02/2009 Joint press release on the global economic crisis by Chancellor Angela Merkel, OECD Secretary-General, WTO Director-General, ILO Director-General, IMF Managing Director and World Bank President