Boosting economy to top G20 talks

Finance officials from the Group of 20 richest nations are set to outline a commitment to boosting the global economy when they meet in London later.

EconomyWhile there is expected to be consensus over continuing to spend, there is some friction over the pace of spending and when to scale down stimulus efforts.

And a European proposal to curb bankers’ bonuses may face opposition from the US.

A full G20 meeting takes place in Pittsburgh later this month.

Chancellor Alistair Darling told the BBC that the UK needed a robust regulatory regime and the government had to decide what was appropriate.

“If people don’t like that, yes they could potentially go elsewhere,” Mr Darling told the BBC.

“But… it is not actually in our interests that we get people going off to offshore jurisdictions where they’re not properly regulated, which is why I would like to get international agreement, why I think we will get international agreement.”

US Treasury Secretary Timothy Geithner said he did not expect any major announcements to emerge from the London talks.

With Japan, France and Germany officially out of recession, minds are turning to co-ordinating the withdrawal of billions of aid and stimulus measures that were injected into countries by their governments over the past year.

And finance ministers and central bankers are set to co-ordinate plans for the eventual tapering off of government support.

Other financial reforms are up for discussion, including the US proposal for an international agreement on forcing banks to increase their capital reserves to help prevent another financial crisis.

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