Finance officials from leading advanced and emerging countries began talks on Thursday on reshaping the global economic system to prevent debilitating crises like the one that took the world to the brink of a depression in 2008.
G20 deputy finance ministers and central bank governors will prepare a draft communique that their bosses will discuss on Friday and Saturday, said Kim Young-min, a spokesman for South Korea’s Ministry of Strategy and Finance.
The G-20 is trying to come up with a new financial architecture, having agreed at a series of summits in the US and Britain since late 2008 on the need for tighter financial regulation to prevent the kind of Lehman-induced turmoil that could potentially sink the global economy.
Finance Minister Pranab Mukherjee said that the continent’s debt woes were worrisome and have implications beyond the region. “If it affects the recovery of Europe as a whole, then it will affect the world recovery.”
Reinforcing fears that consumers are fretting about the debt crisis afflicting the region, retail sales in the 16 countries that use the single currency fell by 1.2 per cent in April.
US Treasury Secretary Timothy Geithner said he did not think the G-20 would agree at this week's meeting on the bank tax issue. “We want to accelerate progress on a global deal on core reforms,” Geithner said in Washington on Wednesday.