Getting Ready For G20
- March 24th, 2009
- Posted by EUEditor
The European Union has set up its positions for the G20 summit of world leaders at London in a fortnight (2.4.09) — receiving support for some of its positions from Australia.
HEADS OF GOVERNMENT AGREE ON THEIR POSITION
The EU Heads of Government met in Brussels (19-20.3.09) and approved a new loan to help double the fund available to the International Monetary Fund (IMF), in efforts to stabilise world finances.
The amount agreed to at Brussels is €75-billion (just over $US100-billion; dcerates.com, 23.3.09), going towards a target increase of $US250-billion; with so far $US 100-billion also pledged by the government of Japan.
Leaders at the summit said delivering the IMF loan should now depend on other countries, specifically China and the United States, joining in with the funding.
The European Union as a bloc, and its larger member states as individual nations, will be represented at the the G20, and will argue for stiffened regulation of financial markets.
Part of that would be to enable the IMF to monitor financial activity more closely, so as to give early warning of extreme fluctuations, and to provide it with stronger funds for intervention.
Differences at the G20 are expected to focus on plans for more economic stimulus, through spending, favoured buy the USA, and the EU concept of more thorough regulation ahead of any extra largesse, on a grander scale.
MORE HELP FOR EASTERN EUROPE
A second gesture at the EU summit saw an increase to €50-billion (from €25-billion), in the maximum available to countries under stress in the economic crisis; mostly member states in Eastern Europe; (some of which, including Hungary, have had access to €10-billion of the special funds, up to the present time).
The French President, Nicolas Sarkozy,at the summit, gave out a reassurance that a subsidised move by the Renault car company to re-locate production from a Slovenian plant, to one in France, would not mean job losses in Slovenia.
AUSTRALIAN PRIME MINISTER
Australia’s prime Minister, Kevin Rudd, has given some support to European proposals for reinvigorating the IMF.
Departing on a two-week overseas tour, leading up to the London meeting of the G20, he said the world financial agency should be better resourced, to avoid a “second sub-prime crisisâ€.
The first leg of the Prime Minister’s tour will to the Unites States, to hear American perspectives also on the economic debate, from President Barack Obama.
Reference:
Laurence Peter, “France swerves to avoid new EU split”, Brussels, BBC News, 20.3.09. www.bbc.com, (23.3.09).
Constant Brand, “EU summit considering more money for IMF, Brussels”, AP, 20.3.09. www.forbes.com, (23.3.09).
ABC Online, “Rudd heading to US for crisis talks with Obama”, Canberra, 23.3.09. www.abc.com, (23.3.09).
Picture:
Summit venue, Brussels