TORONTO Following are key sections from the draft communique that G20 leaders are discussing at their summit this weekend.
"We welcome the actions taken, China's efforts to boost domestic demand and to further reform the renminbi exchange rate regime and enhance exchange rate flexibility." a G20
China, however, has said it wants no explicit reference in the communique arguing that its exchange rate is a sovereign matter.
"On the one hand we need to deliver on existing stimulus plans...At the same time recent events highlight the importance of sustainable public finances.
"There is need for all countries to put together credible, properly phased and growth friendly plans to deliver fiscal sustainability, differentiated for and tailored to national circumstances.
"Reflecting this balance (between growth and fiscal consolidation), advanced economies have committed to fiscal plans that will at least halve deficits by 2013 and stabilize or reduce government debts to gdp ratio by 2016.
"The G20 expresses support for the financial sector to make a fair and substantial contribution toward paying for any burdens associated with government interventions where they occur to repair the financial system for fund resolution."
"Some countries are pursuing a financial levy. Other countries are pursuing other approaches."
The communique will have an annex listing five guiding principles on financial reform or general approaches. These will address the need to:
- protect tax payers
- reduce risks from financial sector
- protect the flow of credit in good times and bad
- take into account the individual circumstances of each country
- promote a level playing field.