Dáil Éireann Debate, Thursday - 18 November 2010
56 Deputy Willie Penrose asked the Minister for Foreign Affairs if he will outline the G20 leaders' talks which were recently held in Seoul with a view to seeking ways of rebalancing the world economy, the resolutions which emanated from these talks; the impact which these will have here; and if he will make a statement on the matter. [43164/10]
View answerG20 leaders met in Seoul, Korea on 11 and 12 November. The meeting was an important stock-taking opportunity and enabled G20 members to follow-up on commitments made previously on a coordinated global response to the financial crisis. Discussion at Seoul centred on the global economy and the framework for growth, IMF governance and financial regulation. At the Summit, G20 leaders agreed on the Seoul Action Plan, a comprehensive policy plan spanning five policy areas (Monetary and Exchange Rate Policies; Trade and Development Policies; Fiscal Policies, Financial Reforms; and Structural Reforms) to further promote strong, sustainable and balanced growth.
There was agreement to move towards market-determined exchange rate flexibility, reflecting economic fundamentals with indicative guidelines to be agree by June 2011. The need for vigilance against volatility was agreed, as was a commitment to refrain from protectionism. The G20 Summit expressed its strong commitment to bring the Doha Round of world trade talks to a successful, ambitious, comprehensive and balanced conclusion, and recognised 2011 as a critical window of opportunity in this regard.
While US efforts to secure G20 agreement a 4% target for deficits and surpluses were unsuccessful, summit participants did agree to engage in further discussions with a view to having indicative guidelines adopted at the G20 summit in France next year.
G20 leaders endorsed their finance ministers' agreement to increase the voting strength within the International Monetary Fund (IMF) of the emerging economies of China, Russia and Brazil. It was further agreed that the IMF should have an enhanced role in the surveillance of systemic risks and vulnerabilities. The G20 member countries also enhanced its Flexible Credit Line (FCL) and created a Precautionary Credit Line (PCL) as strengthened financial safety nets aimed at coping with future crises.
The Summit also endorsed the Basel III agreement on the capital requirements applying to banks and tasked the Financial Stability Board to bring forward recommendations to strengthen its role and capacity.
The Summit agreed on the Seoul Development Consensus for Shared Growth and its Multi-Year Action Plan on Development. Under the Seoul Consensus, nine key pillars (infrastructure; human resource development; trade; private investment and job creation; food security; growth with resilience; financial inclusion; domestic resource mobilisation; and knowledge sharing) where it is believed actions are necessary were identified. A Global Partnership for Financial Inclusion was also launched in Seoul and a progress report is to be prepared for the 2011 G20 Summit in France.
G20 leaders also set out a series of commitments concerning fossil fuel price volatility, the protection of the global marine environment and climate change and green growth. The G20 leaders endorsed the G20 Anti-Corruption Action Plan to create a transparent and fair business environment.
The resolutions and policies agreed at G20 summits affect international financial, trade and economic conditions, and so have a direct impact on Ireland. Although supportive of the G20 reform programme, Ireland is not a member of the G20 and our position on G20 proposals is primarily articulated through the EU. The October European Council agreed the EU position for the Seoul G20 Summit, and the Irish government was in full agreement with the position agreed by EU heads of state and government at that European Council meeting. The EU was represented at the Seoul G20 meeting by Presidents Van Rompuy and Barroso.
