Main focus of Friday, April 3, 2009

Sweeping reforms

At the G20 summit in London the leading industrial and developing nations have agreed on sweeping reforms of the financial system. Banks and hedge funds will be subject to stricter controls, while over one trillion dollars (681 billion pounds) has been earmarked to help the poor countries of the world.

Trouw - Netherlands

The G20 meeting in London was a "summit of wisdom", writes the daily Trouw. "The leaders of the world's 20 most important economies avoided conflict over the question of who has to do what to get the economy back on its feet. True, they have differences of opinion, but in London they stuck to the task the G20 was initially founded for: directing and coordinating the economy and trade on a global level. The former American president couldn't even mention such a thing without a sneer of disgust. The new president Barack Obama let it be known in London that the Americans are once more keen on global cooperation. ... The decision to establish a special fund to stimulate trade reflects the fact that the economic crisis is not an abyss out of which we must all struggle on our own - if necessary at the expense of our neighbours - but a global problem. Not much more can be expected from such a summit. If the promises that have been made here are honoured much good will be achieved." (03/04/2009)

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More from the press review on the subject » Trade, » Financial Markets, » Global

Rzeczpospolita - Poland

The conservative daily Rzeczpospolita is critical of the results of the G20 summit: "They didn't quarrel about how to save the world but about who should control it. In London they wanted to decide who will be the major power in the post-global world: the business community or the politicians? But in the end the G20 summit didn't resolve this dispute. There was a little populist performance on limiting bankers' salaries and a few critical moments regarding sanctions for states that allow tax havens. We can count ourselves lucky the global financial system didn't shift towards socialist and anti-free market solutions. Carefully formulated one can say that the [political] leaders conveyed the impression that they had won." (03/04/2009)

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More from the press review on the subject » International Relations, » Economic Policy, » Poland
All available articles from » Tomasz Wroblewski

Lidové noviny - Czech Republic

The G20 participants spent most of their time peddling optimism, writes the conservative daily Lidové Noviny: "Is a good mood an economic indicator? No doubt it is. ... However the summit did not deal with the crisis itself. The agreements over regulations, the strict measures against tax havens, the payment of hundreds of billions into the IMF - all of that is just preparation for the next battle. Excessive insistence on regulation can also be counterproductive. ... The German Finance Minister Peer Steinbrück said that the main goal of the summit would be the supervision of the financial markets. And the first thing the participants agreed on was measures for fighting tax havens. It was above all Germany and France that pushed for tighter regulations. However it will now be up to the individual governments to decide whether under these circumstances they will put money into economic stimulus programmes." (03/04/2009)

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More from the press review on the subject » Fiscal Policy, » Tax Policy, » Global
All available articles from » Zbyněk Petráček

Delo - Slovenia

After the international financial summit in London the daily Delo doubts the G20 will be able to keep up with the increasingly ominous crisis scenarios: "If we translate the astounding but nonetheless objective figures into reality one thing is clear: a de-globalisation and standstill of this magnitude in world trade will mean the axing of millions of jobs, huge losses, debts and the collapse of many companies, vast state budget deficits and consequently also human dramas as well as increased social and political tensions worldwide. The problem lies in the fact that up to now none of the classic fiscal or monetary measures have 'made an impact'. Owing to a lack of good ideas the G20 summit - like a number of governments before it - sought refuge in political or strategic measures which are inconsequential in terms of providing a true solution to the crisis, such as cutting bonuses for bank bosses." (03/04/2009)

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More from the press review on the subject » Fiscal Policy, » Economic Policy, » Global
All available articles from » Miha Jenko

Corriere del Ticino - Switzerland

The liberal Swiss daily Corriere del Ticino sees the results of the G20 summit as a "historical turning point" but doubts the goals will be successfully implemented: "Among other things tax havens that fail to cooperate are to be banned. They'll be put on the black list which, as we all know, doesn't apply to Switzerland. On the other hand our country has landed on the grey list of countries that intend to respect OECD standards but have not yet implemented them. It will be interesting to see these lists and above all to see whether the UK and the US are included or whether the G20 are applying double standards in this area from the outset. … To sum up one can say that the G20 drew up the outlines for a new financial architecture but failed to come up with even a single approach for joint action." (03/04/2009)

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More from the press review on the subject » International Relations, » Fiscal Policy, » Tax Policy, » Switzerland, » Europe, » U.S.
All available articles from » Alfonso Tuor

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