MEXICO CITY Nov 5 Leading economies in the
Group of 20 will make sure they do not tighten budgets so
quickly as to hurt growth, according to a draft communique drawn
up for top G20 finance officials meeting on Monday.
Here are some highlights from the draft communique that was
read out by a G20 official:
"Global growth remains modest and downside risks are still
elevated, including due to possible delays in the complex
implementation of recent policy announcements in Europe, a
potential sharp fiscal tightening in the United States, securing
funding for this year's budget in Japan, weaker growth in some
"We will ensure our public finances are on a sustainable
path, in line with the medium-term Toronto commitments in the
case of advanced economies. We will ensure the pace of fiscal
consolidation is appropriate to support growth."
"In Japan, further progress in medium-term fiscal
consolidation is needed.
By the next summit, advanced economies agree to identify
credible and ambitious country-specific targets for the debt to
GDP ratio beyond 2016, where these do not currently exist,
accompanied by clear strategies and timetables to achieve them."
U.S. "FISCAL CLIFF":
The United States will carefully calibrate the pace of
fiscal tightening to ensure that public finances are placed on a
sustainable long-term path while avoiding a sharp fiscal
contraction in 2013."
"In this regard, we reiterate our commitments to move
rapidly toward more market determined exchange rate systems and
exchange rate flexibility to reflect underlying fundamentals,
avoid persistent exchange rate misalignments, and refrain from
competitive devaluation of currencies."
"We reiterate that excess volatility of financial flows and
disorderly movements in exchange rates have diverse implications
for economic and financial stability."
"We remain committed to the full, timely and consistent
implementation of the financial regulation agenda and discussed
the latest FSB reports on the progress and implementation of
agreed reforms. We endorse the conclusions and recommendations
of the fourth progress report on the implementation of the G20
commitments to OTC derivative reforms and the BCBS report on the
implementation of Basel III.
We agree to put in place a legislation and regulation for
OTC derivative reforms promptly and act by end-2012 to identify
and address conflicts, inconsistencies and gaps in our
respective national frameworks including in the cross-border
application of rules.
We agree to take the measures needed to ensure full timely,
and effective implementation of Basel 2, 2.5 and 3, and its
consistency with the internationally agreed standards.
We look forward to receiving for our spring meeting the BCBS
(Basel Committee on Banking Supervision) report on the
consistency of measurement of risk-weighted assets. We endorse a
charter for the regulatory oversight committee which will act as
the governance body for the global legal entity identifier
system to be launched in March 2013."