Britain, France and Germany called on the G20 today to discuss exiting measures implemented to tackle economic crisis, as well as limits on bank bonuses, at a forthcoming summit in Pittsburgh.
In a joint letter to European leaders, British Prime Minister Gordon Brown, German Chancellor Angela Merkel and French President Nicolas Sarkozy said major economies had to avoid creating new global imbalances as the recession receded.
They said that although the world economy was stabilising, the crisis was not yet over and urged governments to implement fully their recovery plans while ensuring that they did not create the conditions for new global imbalances in the future.
"We must therefore work on exit strategies that will be implemented in a coordinated fashion as soon as the crisis has ended," their joint letter said.
Finance ministers and central bankers from the G20 group of developed and emerging economies meet in London tomorrow and Saturday ahead of a gathering of G20 leaders in Pittsburgh on September 24th to 25th.
The three leaders also asked the G20 to discuss tougher regulation of the financial sector and a "complete list of counter measures" to be introduced in March 2010 to penalise any countries that were still deemed not to be cooperating over their tax regimes.
"We also have to examine ways of limiting bonuses at banks be it in relation to total payouts, be it in relation to the bank's revenues and/or profits," they said in the letter.
The letter was addressed to Swedish Prime Minister Fredrik Reinfeldt, who holds the EU presidency, and other European leaders.
"The letter on bonuses that I will send to the President of the European Union this afternoon will contain a little surprise, it will be signed not only by Mrs Merkel and myself, it will also be signed by Mr Gordon Brown," Mr Sarkozy said in a speech to workers in the town of Caligny.
"Even the English understand that you have to regulate, you have to impose limits and that there are unacceptable scandals," he said.
The three leaders said they expected the G20 to issue clear guidelines on salaries and bonuses in the banking sector.
Reuters