G20 finance leaders pledged on Saturday to keep economic life-support packages in place for now, slap tighter controls on bankers' pay and give a bigger voice to emerging markets in the international institutions.
A draft of their joint statement seen by Reuters showed that finance ministers and central bankers meeting in London agreed fiscal and monetary policy would stay expansionary for as long as needed so as not to derail recovery from the worst financial crisis since World War II.
The global economic outlook is certainly a lot better since the last of a string of G20 meetings designed to extract the world from a deep recession. But policymakers are clearly worried about derailing that recovery.
We will continue to implement decisively our necessary financial support measures and expansionary monetary and fiscal policies consistent with price stability and long-term fiscal sustainability until a recovery is firmly secured, the draft said.
The finance chiefs also agreed to create a global structure for imposing tighter controls on pay at financial institutions to discourage bankers from making the kind of risky bets that started the crisis back in August 2007.
These included deferring bonus payments over time and subjecting them to clawback in case things went sour, but fell short of the cap that some countries had wanted. The compromise was that the Financial Stability Board, a global regulatory council headed by Bank of Italy chief Mario Draghi, would study the issue further.
The draft also said that emerging nations like India and China should have a greater say in the running of the International Monetary Fund and World Bank but did not offer up any formula of this should be achieved.
It said only that their voice in global economic policymaking would grow significantly and that it expected substantial progress to be made on the issue at a summit of world leaders in Pittsburgh later this month.