From the USA there were clear signs that the other participating states can expect an "extremely constructive attitude” from America. For Angela Merkel it is clear that, "The summit will bring about results and clear regulatory progress.”
Better controlling financial markets
The British Prime Minister is convinced that the G20 summit will result in tighter control of the financial markets, including tax havens which have hitherto rejected all controls. The individual states must in future coordinate their control mechanisms better, said Gordon Brown.
In this context Angela Merkel and Gordon Brown welcomed the changed attitude on the part of states such as Switzerland and Liechtenstein in the fight against tax evasion. They saw this as a first step on the road to a new global financial order. The Chancellor hopes that they will be followed by other steps, before the London Summit.
No more economic stimulus packages
The Chancellor has unequivocally rejected the idea of any more economic stimulus packages. The government’s most recent recovery package lays out clear prospects for Germany for 2009 and 2010. Many of the measures adopted to stimulate the economy have not yet had time to take effect. It is then premature to discuss new programmes at this stage.
It is also important to return to a sound financial policy after the crisis, Angela Merkel demanded, speaking in London.
Federal Finance Minister Peer Steinbrück, speaking today on the fringes of a meeting of G20 finance ministers expressed very similar sentiments. Before any more stimulus programmes are considered, the financial system must be repaired, he said. It makes no sense to pump more cash into the economy before we have resolved the financial problems that caused the credit crunch in the first place.
The ministers of finance also met in London at the weekend in order to prepare for the G20 summit meeting on 2 April. They agreed to strengthen the International Monetary Fund.
At the G20 summit in London, the major European states will be proposing that the IMF and other experts monitor the implementation of the Washington action plan agreed in November. They want to see hedge funds and other high-risk capital providers placed under appropriate supervision, without exception. This regulation is to cover tax havens too.
In order to prevent future global financial and economic crises, the Europeans will be proposing a global charter for sustainable business at the London summit. Under the aegis of the United Nations and other international organisations this is to combine market and social principles. They would like to see the funding of the IMF doubled.
In mid-November the major industrialised countries and emerging economies (G20) launched a new global financial order in Washington D.C. Since then, the finance ministers have been working in four groups to put into practice the 47-point plan, swiftly and resolutely. It covers a wide range of measures from acute crisis management for the economy to long-term reforms of the international financial markets.
