The Official Communique from the G-20 London Summit was released this morning. Somewhat surprisingly, it includes the priorities of both the US and European nations, which have been disputing the best ways to stem the financial crisis for weeks.
There was much apprehension as to whether or not Chancellor Merkel and President Sarkozy could come to an agreement with President Obama and Prime Minister Brown.
The Communique lays out both broad and specific plans for financial recovery, including:
The establishment of a Financial Stability Board, which will oversee countries' compliance with the new directives agreed to at the Summit;
Strengthened regulation and supervision of financial institutions (including hedge funds for the first time ever)
Agreement to take action against tax havens: "the era of banking secrecy is over."
$1 trillion of resources to the world economy through trade finance
An early warning system for financial instability
$850 billion to the IMF: $250 billion from members immediately
These are just some of the stipulations agreed upon today. Reading through the communique, it is clear that world leaders, although disagreeing on the best methods for ending the crisis, were able to come together and negotiate. The provisions will still need to be honed and implemented, but it is encouraging to see that leaders worked together to find a solution and(attempt, at least) to save the global economy.
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