Skip to: Content
Skip to: Site Navigation
Skip to: Search


G-20: Strong hand of Angela Merkel

While French and British leaders have been high profile, the low-key German chancellor is getting credit for the summit's regulatory focus.

(Page 2 of 2)



"The real surprise of this summit is actually how much has been agreed."

Skip to next paragraph

As host, Prime Minister Brown shared the details emerging from the summit.

A package of $1 trillion for the International Monetary Fund and the World Bank was agreed to help struggling nations around the world, announced the prime minister. The measure includes a $500 billion boost in funding for the IMF, $250 billion aimed at developing countries through "special drawing rights," and $250 billion to boost world trade.

Brown also outlined new policies to crack down on tax havens, regulate hedge funds, and rebuild trust in the financial system to "prevent a crisis such as this from happening again."

Greater regulation of hedge funds and credit-ratings agencies is also on the way, as well as $100 billion in aid for the world's poorest countries and a new Financial Stability Board that will work with the IMF to provide an early warning mechanism for the financial system

"This is the day that the world came together to fight back against the global recession, not with words, but with a plan for global recovery and for reform," added Brown.

At her own post-summit press conference, Chancellor Merkel struck a typically sober pose, cautioning that the devil will be in the details of the G-20 deal's implementation.

But, she said, the agreement was "a very, very good, almost historic compromise" that would give the world "a clearer financial market architecture."

Of course, every leader at the summit will be eager to be seen as having helped engineer this outcome, and there is something for everyone in the final package.

China, for example, is on much stronger ground in terms of securing greater voting rights on the IMF after its president, Hu Jintao, committed his country to giving $40 billion worth of extra funds to the fund.

US officials credited Obama with bridging the divide when it came to agreeing on new measures on tax havens.

But perhaps Brazil's President, Luiz InĂ¡cio Lula da Silva, can go home with the biggest smile on his face.

Television pictures showing a group of backslapping G-20 leaders having an impromptu chat, with Obama reaching out to grasp Lula's hand.

"I love this guy. He's the most popular politician on earth," Obama told his counterparts.

Permissions