Rudd hails deal as marking end to "financial cowboys"
By Kate Hannon, National Political Editor03 Apr 2009 6:53 AM
LONDON, April 2 AAP - The financial market "cowboys" who wreaked havoc on the world economy will be brought undone by the agreement struck on Thursday by the world's 20 largest economies, Prime Minister Kevin Rudd says.
Mr Rudd says the $US1 trillion ($A1.4 trillion) deal agreed on at the G20 summit in London, will benefit "tradies", young people and small business with real commitments against real timelines.
"Today's agreement begins to crack down on the sort of cowboys in global financial markets that have brought global markets undone with real impacts for jobs everywhere," Mr Rudd told reporters at the conclusion of the summit on Thursday.
The summit has agreed to a restructure of the financial regulatory system, reform of and a trebling of funding for the International Monetary Fund (IMF) to $US750 billion ($A1.08 trillion), an extension until the end of next year of a ban on nations introducing trade protection measures, a curb of excessive executive payouts and agreement to co-ordinate further economic stimulus.
Mr Rudd, who played a role in a working group set up to develop proposals after last Novembers' G20 summit in Washington, DC, said the agreement was a concrete plan to reduce, but not eliminate, the effects of the global recession set off by the collapse of banks and financial markets in the US last year.
"It's been prime ministers and presidents who have struck this deal but it's small businesses, tradies and young people who will benefit from it over time because global action is necessary to support local jobs," Mr Rudd said.
Mr Rudd dismissed reports of divisions between world leaders over action discussed at the summit, saying there had been an overwhelming drive among leader towards achieving a workable outcome.
"This is ... a concrete plan by us to try and reduce the impact on joblessness on all our countries, including Australia, and to improve the level of stimulus and other measures in the economy," Mr Rudd said.
"This is about reducing the impact of the impact of the global economic recession, it's not about immediately removing it, I just want to be up front with people about that."
The amount each country will need to commit towards the new funding for the IMF would be worked out by January.
Mr Rudd said the IMF was "the thin blue line" between failing national economies and global financial chaos and a key element of the meeting was to ensure it received added resources to enable it to support fragile economies.
He said it would be a tough, long haul ahead for Australia amid a "spectacular" economic downturn with "horrendous" forecasts for growth released by the OECD this week.
The agreement brings to an end Mr Rudd's two-week overseas trip when he heads home on Friday with a brief stopover in Singapore, where he will hold a meeting with Prime Minister Lee Hsien Loong.
Before he leaves London, though, he was to have talks with China's President Hu Jintao on Thursday evening.
