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£1trillion fighting fund to beat global slump
Joe Murphy, Political Editor2 Apr 2009
An economic lifeline to the world of more than $1.1 trillion was agreed at the London G20 summit today.
“This is the day the world came together to fight back against the global recession,” declared delighted host Gordon Brown.
As cavalcades of world leaders rumbled out of the capital tonight after a whirlwind few days, the G20 was hailed a success by the Prime Minister.
He pulled out a white rabbit at the end in the form of the big extra sum of money to ease pinch points in the global economy.
It was not the fiscal boost he and Barack Obama originally hoped for but, coming on top of previously announced plans to support the major economies totalling $2 trillion, it could be sold as a massive new injection to be poured into financial bottlenecks and sweeten trade deals.
Nicolas Sarkozy continued to make waves to the end, but he was able to trumpet a move towards tougher banking regulation and crackdowns on tax havens as a victory for French brinkmanship.
The extra money was formed of trade sweeteners, new credit lines for struggling countries, extra reserves and rescue funds for those in trouble.
Cash will be targeted particularly at the developing economies around the Far East and Latin America, breathing life into what were fast-growing markets for British and American firms.
Speaking to the Evening Standard earlier, Mr Brown admitted the deal had “not been easy” to ringmaster as arguments broke out between the leaders of France, Germany, the US and China, but he predicted: “This is a historic day for London. World leaders are gathering in our city to agree a global plan for recovery and reform.”
Mr Brown had asked for a $100 billion fund to underwrite trade deals, particularly in the developing markets. By this afternoon he had verbal offers totalling $200 billion or more.
In addition, a plan to double the IMF funds to $500 billion to help rescue struggling economies looked set to hit $750 billion. China, Japan and the US were among big contributors of loans to the IMF when the hat was passed around.
German and French opposition made the prospects for a further fiscal stimulus impossible today.
But a face-saving conclusion was expected to pledge another review in summer or autumn and then to “do what is necessary”.
Extra funds were also passed to the IMF to form “special drawing rights” for struggling developing countries who are falling low on their currency reserves. The aim is to boost confidence for investment and trade.
Despite French President Mr Sarkozy and German Chancellor Angela Merkel's demands for heavier-handed regulation of financial industries, their differences with the US and China were described by a well-placed source as “tonal” rather than real.
A compromise was being drafted under which a blacklist of countries that offer rogue banks shelter from proper regulation and taxation will be published. There was also progress towards a policy of “naming and shaming” countries that resort to import curbs to protect domestic jobs.
Mr Brown was upbeat when he spoke to the Standard. He said the summit had come together “not with words but with a plan for global recovery and reform and a clear timetable for its delivery” that included practical help, firm principles for banking reform and a blacklist of rogue tax havens.
Reader views (45)
The true outcome of this summit will be: Debt, Unemployment and Inflation on the grandest scale ever seen.
- M.E.Appleton, Frankfurt, Germany, 03/04/2009 10:16
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Val Daniels
I have never heard such idiotic remarks from someone who, by living in Spain, isn't even experiencing the policies her stupid and ghastly socialist Government through her voting stupidity has lumbered us with. I agree with Malcolm, how can you vote your entire life for a party regardless of what disastrous policies they create and are having on people? I would remove your vote completely since you no longer reside here. My fervent wish is that Labour, orchestrator of economic disasters each time they have been in power, never, EVER has the opportunity to be in power again. At 71 I would have thought you'd have gained some sense!
- Tjames, Bromley, Kent, 03/04/2009 09:53
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Val from Spain - so you've been a fully paid up member of the Labour Party for the last 50 odd years? So if you'd have had your way, Callaghan and Heally would have won in 1979? Or, God help us, Michael Foot in 1983?
How can a sensible person vote slavishly for the same party all their lives? I've voted for all of them in my time as the circumstances at the time dictate. Including Rosie Barnes in Greenwich for the SDP back in '83!
One things for sure though, I'll never vote Labour again that's for sure.
- Chris, Brighton, England., 03/04/2009 09:30
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That can be Silvio's new facebook profile picture!
- Luke, London, 03/04/2009 08:31
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These people are the most arrogant, self-serving, economic idiots!!! They will destroy the economies of the free world, and have us all beholden to the Chinese government, who vowed long ago to destroy us economically, only because they did not think they could pull it off militarily.
In the US, we will be marching in the streets all over the country on April 15th. This is the day we are required to file our Income Tax Returns, so it has been chosen as the day to stand up to this insanity of spending/borrowing our way out of debt.
I wish we could get our British brethren to join us in this peaceful but vocal revolt.
- Bpaul, Carlsbad, CA USA, 03/04/2009 00:59
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#Malcolm London
There you go again, showing how little you know about politics and the voting rights of people living outside the UK. I have the right to vote and express an opinion because I am a British citizen and I pay my taxes to Britain. I am also a fully paid up member of the Labour party and have been since I became old enough to vote; I am now 71. I am fortunate in that I have a home here and a home in the UK. Postal voting enables me to register my vote. I am not disenfranchised because I live outside the UK for part of the year. Your assertion that Gordon Brown not being elected was a first is erroneous. Have you forgotten that when the Tory's got rid of Margaret Thatcher, John Major took her place. He was elected by ballot by the Tory MPs. That's how it works. There was no general election until the end of the 4/5 year term. Gordon Brown was chosen by Labour MPs. He will go to the country at the end of the 5 year term, or before if he chooses to do so. Don't try to teach your grandmother to suck eggs. I've forgotten more about politics than you will ever know; I was a local councillor for several years until I retired to make way for younger blood.
- Val Daniels, Mijas Costa, Spain, 02/04/2009 22:43
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If Brown hadn't got an agreement the very same moaners on here would have been slagging him off for that. Shame also that so many of his critics on here are only semi-literate and resort to cheap insults rather than reasoned debate.
- Steve, London, UK, 02/04/2009 22:12
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I like the spectacle of Gordy Broon stating the word GLOBAL over and over again, desperate to put some clear water between him and this countries problems.
Unlike most Labour voters, I am not as thick as two short planks and can see his mess for what it is.
- Dave Davies, Basingstoke, Hants, 02/04/2009 22:04
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Are they laughing because Berlusconi is standing on Barroso's shoulders ?
- Doug Watt, london e14, 02/04/2009 21:32
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And how many trillions for the security, and the pleasure of all these presidents, and government people?All I hear and see make me sick about the world, especially this kind of world and people.
- Susan, France, 02/04/2009 21:18
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MELVYN FROM CANVEY ISLAND DONT KID YOURSELF . I HAVE NEVER VOTED TORY IN FIFTY YEARS BUT HAVING HAD MY EQUITABLE LIFE PENSION CUT BY TWO THIRDS, WITH BROWN IGNORING THE PARLIAMENTARY OMBUDSMAN WHO SAYS IT WAS HIS FAULT, HAVING SEEN EVERYONES PENSION CUT BY TAXING DIVIDENDS IN PENSION FUNDS, HAVING SEEN BUILDING SOCIETIES NATIONALIZED WITHOUT COMPENSATION. HAVING SEEN SHARES I OWNED DESTROYED, LIKE LLOYDS BECAUSE THEY WERE FORCED TO MERGE WITH TROUBLED BANKS BY BROWN, HAVIND SEEN 100000 KILLED IN A WAR OVER WEAPONS THAT DID NOT EXIST, HAVING SEEN POOR PEOPLE EARNING A PALTRY £8000 TAXED, HAVING SEEN MY GRANDSON LEAVE UNIVERSITY WITH £28000 DEBTS, HAVING SEEN MPS DRAW EXPENSES IN TEN YEARS THAT ARE MORE THAN SOME PEOPLE EARN IN THEIR LIFE TIME, HAVING SEEN OUR GOLD RESERVES SOLD FOR A THIRD OF WHAT THEY ARE WORTH SO THAT WE HAVE NO SAVINGS TO BAIL OUT POOR PEOPLE FACING THE CLOSURE OF THEIR FIRMS, SHALL I GO ON.
WE HAVE A HOME SECRETARY THAT SAYS SHE LIVES WITH HER SISTER, UP THE ROAD A LABOUR MP WHO HAS DRAW £150000 PLUS EXPENSES WHEN HES TWENTY EIGHT MINUTES FROM WESTMINSTER BY TUBE AND THEY NEVER SIT PAST 10PM , SOMEONE ELSE HAS DRAW A FORTUNE IN TAXI FARES, MORE THAN I EARNT IN FORTY YEARS, ANOTHER MINSTER HAS, OH POT ON IT I'M GOING TO MAKE A CUP OF TEA AND TAKE A BLOOD PRESSURE TABLET,
THEY ARE NOT TORY BLOGGERS THEY ARE THE FURIOUS BRITISH PUBLIC.
- Alan Green, Woodford Green, 02/04/2009 17:03
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And from where exactly is this trillion coming?
- Na, London, 02/04/2009 17:00
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They are all on another planet as far as being in touch with the ordinary British person. Weird where all this money suddenly comes from when we are constantly told there is no money to pay millions of ordinary people a living wage. What they are effect telling the thousands of vulnerable elderly people in need of decent care in this country is to just die because they'd rather give the money to fat cats and their bonuses and pensions. Yet, it is our taxpaying money they are using. How much longer are we going to put up with this attitude of mind?
- Janet, London, 02/04/2009 16:56
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Nice one Gordon. You concentrate on getting on with the grown-up stuff and leave Dave "the heckler" Cameron and the blindly-partisan posters on this site to their pathetic moaning and sniping.
- Fresh, London, 02/04/2009 16:54
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Three cheers for Gordon Brown.
- Mick, London, England, 02/04/2009 16:54
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The Far East is indeed a fast growing market for UK goods. The problem is that the goods in demand like Burberry, Mulberry and their ilk are no longer made here. If you want high class British buy a Chanel scarf which is made in Scotland!
- Jack Spratt, Richmond, England, 02/04/2009 16:20
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One trillion,WOW.Guess the fat cats pension is safe now.
- David, london, 02/04/2009 16:17
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We in England will get nothing maybe Scotland will but mostly it will be other so called poor countries who have dictators or who havae wasted your hard earned cash given to them by Brown. We have had to pay a large amount of money for this G20 summit and although they say house prices are up and the footsie hightest it has ever been for some time wait until all this dies down and the truth comes out wait until you find out how much Brown has promised all and sundry so that we will be even deeper in debt and what has he promised France and Germany we should be very concerned about that Brown will do anything to achieve his aim. He is akin to a dictator and notice how they shuffle figures around so that you do not know the real figures. Look how they have blamed the bankers all the time when it should be Brown and his cronies Europe knows this all this was thought up by Mandy and Blair and Brown and they sold it to George W Bush and because Bush was a big mate of Blairs he bought it. Brown is two faced first he blames bankers and the world then he has the cheek so say he has suggested new regulations all he has put back is the ones he took away. I also think there should be a fraud investigation into RBS and the Dunfirmline BS how did RBS get away with buying all those companies without the competition watchdog knowing I believe Brown gave the nod and the wing as he did with Lloyds. and Brown Darling split the Dunfirmline BS for their own political reasons
- Jacqui Williams, peterborough cambs, 02/04/2009 16:15
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A trillion quid so that Gord can have a chance of securing a hung parliament (at best) at the next election.
- Tim, Bexleyheath, 02/04/2009 16:13
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How many lies do these Freeloaders have to tell before we boot them out and abolish the entire system?
- Neil M., london uk,, 02/04/2009 16:07
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Don't get your hopes up about the shares - I bought a shed load today, cos it was obvious they'd be going up. Will be selling them very soon - just before the next tumble.
- Phil, London, 02/04/2009 15:56
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Val Daniels from Mijas Costa, Spain - If your such a fan of Gordon Brown, how come you live in Spain?? If you don't live in the UK you have absolutely no right to comment on who is PM or whether he was properly elected.
- Malcolm, London, 02/04/2009 15:49
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You can bet your last penny that NOBODY in the UK will benefit one iota from all the spin and waffle, smoke and mirrors that is emanating from this hyped-up get-together of world leaders.
Correction: UK MP's will ensure their pockets are well and truly overflowing with Joe Publics' cash - the rest of the population count for nothing, are nothing and always will be nothing, in the eyes of the current dictators languishing in the House of Conmen.
- Reuben Camara, Morecambe/Lancaster, 02/04/2009 15:21
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Marl Lee from Vauxhall - your totally missing the point. New Labour was elected for the third time with a promise from Tony Blair that he would serve "a full third term". when he reneged on that promise the Labour party had no mandate from the British people to continue in power and should have held an election. Blair's "promise " (false like all his others)makes this a very different situation from previous "handovers". In addition, Brown didn't even face an election from within the labour party.
- Malcolm, London, 02/04/2009 15:16
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And there's me thinking you would all have been so pleased that house prices have risen for the first time in 17 months, manufacturing bottomed out in the last quarter, and may no longer be declining, the Footsie is at 4095 and rising. Gordon Brown's tour around the G20 countries has achieved more than we could have hoped for. I don't think David Cameron had anything to do with it, but I know a man who did!
#Mark Lee, Vauxhall
They don't get it, Mark. I've been trying to tell them for months, but theres none so deaf as those who wont hear. They are ignorant of how politics and elections work to a man/woman.
- Val Daniels, Mijas Costa, Spain, 02/04/2009 14:58
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I expect the fruits of the G20 conference will be higher on style than substance but perhaps a more honest economic approach will emerge for the future based on real productivity and not on the self-serving scams of parasitic City traders - how deservedly they are now held in contempt!
- Richard Kennard, London, 02/04/2009 14:21
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McBroon should try listening to himself,one big joke!
- Brian Hughes, North Wales, 02/04/2009 14:18
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Toe curling photo's of Brown, as usual. What a deluded fool he is.
- Dee Jay, Fleet Hampshire, 02/04/2009 14:00
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I was actually going to post a sarcastic comment on buffoon Broon but the above views sum it all up.I need not bother after all!
- Steve, London, 02/04/2009 13:41
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Not the world's greatest fan of Brown (mind you, don't think Cameron's really proposing anything new or different), but I get very tired of the "unelected fool" comments.
If you care enough about democracy in this country to be worried about Brown's electoral status, you will no doubt be aware that NO PRIME MINISTER IS DIRECTLY ELECTED BY THE PUBLIC. This includes Brown, Blair, Major, Thatcher, and would include Cameron if the Tories were elected. Technically the PM is appointed by the head of state (i.e. the Queen), although the norm is that it's the party leader.
Brown is no more or less elected than Blair was, or Cameron would be.
- Mark Lee, Vauxhall, 02/04/2009 13:40
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More smoke and mirrors from our discredited, unelected, embarrassing Prime Minister.
These are the facts;
Gordon Brown will not listen to the people – if he did, he would have resigned by now – so he has no right to expect us to listen to him
The other world leaders appear to be treating Crash Gordon as something of a doormat – I expect most things to be achieved at this summit with him not even in the room
The other countries must be laughing their socks off that only Broon was so desperate that he would host such an expensive summit in the midst of the current turmoil – I can just picture them all smirking that good ol' desperate Broken Brown stuck his hand up.
- St, London, 02/04/2009 13:25
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Melvyn from Essex - April 1st was yesterday...
- Nobby Clark, Perth, Scotland, 02/04/2009 13:24
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I agree with John Jones from London - What we need the G20 summit to do is help restore confidence, even if the "detail" is a little thin. However if Melvyn from canvey Island really thinks that the outcome of this summit 9or anything that he's done over the last 10 years) makes Gordon Brown a "great leader" then he really is living in la la land. When the UK economy recovers, as it undoubtedly will, it will be very much "in spite" Gordon Brown and his disastrous record as Chancellor and then (unelected) PM. He might not have caused the credit crunch or the recession, but he is personally and directly responsible for the fact that existing taxpayers, their children and probably their children's children, will be paying for this for years to come. He simply CANNOT/MUST NOT be allowed to use the 'gloss' of the G20 summit to hide his culpability at the next election. Anyone who falls for that New Labour "spin" will do this country significant, and even longer lasting damage. He HAS to go!!
- Malcolm, London, 02/04/2009 13:06
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Brown is so sad - he makes me cringe whenever he opens his mouth or waves his mirror trained hands. He and his party are the source of most of our financial troubles not to mention the social ones.
- Frederick, London, 02/04/2009 12:45
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Let's just have an election and get this unelected fool with his cheesy grin out of office for good.
- Thomas, London, 02/04/2009 12:31
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Business the world over only runs on confidence.
Wihout confidence, there isn't any business.
If this Summit restores a major degree of business confidence, then it will be a success.
Although I am not a Brown supporter, it is important that he appears to succeed on this occasion.
- John Jones, Westminster, 02/04/2009 12:27
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Oh dear how these Tory posters obvious envy our great leader!
One of their clan was on TV last night justifying yesterday violence by saying he has been denied a vote. Well in this country governments are elected for 5 years and you will get a vote either when GB thinks he can win or at the end of Labours 5 year term, just like John Major did!!
- Melvyn, Canvey Island, Essex, 02/04/2009 12:24
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Brown - what a sad pathetic person; quit.
- Tim, London, 02/04/2009 12:14
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How will this rhetoric and hyperbole make me any less poor, Gordon?
Correct, it won't.
- Nobby Clark, Perth, Scotland, 02/04/2009 11:45
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Here we go again why doesn't he just SHUT UP. Every time he opens his mouth his brain drops out.
- Carol, Tunbridge wells UK, 02/04/2009 11:20
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Blah blah blah blah, anybody out there who still believes what Crash Gordon says, as in no more boom and bust?
- Antonia, London, 02/04/2009 11:19
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Another example of saying what people want to hear...but the real substance behind it is nothing. Its just words.
- Mark, London, 02/04/2009 10:57
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I can't wait to see the back of this headline grabbing fiasco. The sight of Brown sucking up to Obama yesterday made me physically sick! what a loser
- Wayne, herts, uk, 02/04/2009 10:51
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Lah lah lah lah lah lah lah ... (can I take my fingers out of my ears yet?)
- Marianne, SW France, 02/04/2009 10:40
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Brown the dreamer and in the past and still Mr Do nothing.
- Peter Noterefed, paris,France, 02/04/2009 10:25
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