The G20 initiative
The French presidency of G20 was aimed at framing answers to the Eurozone crisis, as well as designing long term solutions for the stabilization of the economic, financial and monetary worlds.
The G20, which will remain an informal forum of heads of state and governments solely dedicated to economic issues, is more than ever a key partner to the United Nations for debating and bringing responses to global crises.
The Cannes Summit would be an opportunity to present the progress on reforming the international monetary system and the fight against excessive volatility in commodity prices, which affects primarily the least developed countries. Finally, in Cannes, the G20 countries would renew their ambitious social commitments and reaffirm the importance of development to guarantee a sustainable global growth.
France’s key priorities within the framework of its presidency of the G20 are as follows:
1. Reforming the international monetary
Establishing a more stable and robust IMS requires reducing imbalances and increased coordination of economic policies within the framework for strong, sustainable and balanced growth. The Summit aimed at reforming the international monetary system in order to establish collective responses to the deficiencies of high exchange rate volatility, growing imbalances and ever-increasing stockpiling of foreign exchange reserves by emerging countries which may be confronted by the sudden, largescale flight of international capital.
2. Strengthening financial regulation
The Summit sought to strengthen financial regulation particularly in areas of commodity markets.
3. Combating commodity price volatility
The Summit attempted to find collective solutions to reduce excessive commodity price volatility - particularly of agricultural and energy commodity prices - which undermines world growth and threatens food security. There were proposed solutions for strengthening food security and developing agricultural output.
4. Supporting employment and strengthening the social dimension of globalization
The G20 Summit promoted four priority goals in this field: employment, particularly for young people and the most vulnerable; the consolidation of the social protection floor; respect for social and labor rights; and more coherent strategies by international organizations.
5. Improving global governance
Our economies need modernized international institutions that are capable of effectively regulating globalization. France will seek to support the G20 in its role as the premier economic cooperation body. France will also strive to foster more consistent economic, social and environmental actions by the dedicated international institutions, and to identify areas in which this governance is inadequate. In particular, synergy between the G20 and the United Nations will be strengthened.
6. Acting for development
The French Presidency is particularly committed to support the development of infrastructures and ensuring food security in the most vulnerable countries. The Summit debated on development funding through innovative financing, particularly the financial transaction tax.
The G20 leaders undertook the following decisions at the conclusion of the Summit: • Adoption of an ambitious action plan for
growth and jobs. • A fresh approach to world trade negotiations
in 2012 on the basis of the Doha mandate. • A discussion of a possible global financial transaction tax, which the Commission has proposed for the EU – the tax can ensure the financial sector makes a fair contribution to society and would also help to support the world’s poorest. • The importance of food security and agriculture. • Implementing and strengthening financial reform. • An agreement to increase the IMF resources when needed “for the benefit of the entire membership”. ◆