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Balkenende pleased with concrete G20 agreements

News item | 29-09-2009

'International agreements will preserve jobs, including Dutch jobs,' concluded prime minister Jan Peter Balkenende at the end of the G20 summit in Pittsburgh.

Together with finance minister Wouter Bos, Mr Balkenende participated in the G20 for the third time in succession.

At the summit the world's leading economies agreed to address bonuses, combat protectionism, improve supervision of financial institutions and support the development of the world's poorest countries.

The G20 summit took place in Pittsburgh, USA on 24 and 25 September. Its main goal was to reach concrete agreements on the sustainable recovery of the global economy.

'Good agreements at global level will have concrete benefits for our own countries,' explained the prime minister. 'The joint approach to the financial and economic crisis will produce 200 million jobs and boost economic growth worldwide.'

Both Mr Balkenende and Mr Bos were pleased with the eventual agreements, including limits imposed on bonuses.

Bonuses

Bonuses can no longer be linked to short-term gains but can now only be paid if businesses perform well in the long term. Bonuses can also be recovered if there is reason to do so.

Mr Bos said the agreement was 'an unbelievable step forward'. 'An international agreement on bonuses would have been unthinkable two years ago.'

The Netherlands was one of the countries that called in advance for a joint approach to bonuses. As Mr Balkenende said: 'We must ban perverse incentives once and for all. Ahead of this G20 we sent a letter to all participants explaining the Dutch approach. At least 90% of our approach found its way into the agreements.'

Only the goal of imposing a ceiling of one year's salary on bonuses, as agreed in the Dutch banking code, proved unattainable for the G20.

Global agenda

The participants also agreed in Pittsburgh to bring the Doha Round to a successful conclusion next year. Agreements will be made to promote fair world trade and prevent protectionism.

The G20 also reached agreement on tackling tax havens and money laundering.

Agreements on poverty reduction and the allocation of votes in the International Monetary Fund show that the interests of the emerging economies and developing countries now occupy a higher place on the global agenda.

Climate problem

Agreements on how to finance measures to resolve the global climate problem were not reached during the G20. 'The time wasn't ripe,' said Mr Balkenende.

Environment and finance ministers will discuss financing in the coming period. 'We still have several months before the climate conference in Copenhagen. We must do all we can to arrive at a good climate agreement there.'

Participation in G20

Both Mr Balkenende and Mr Bos were pleased with the decisiveness shown by the G20. Whether the Netherlands will also take part in the next G20 after participating in the last three summits is still uncertain, but the prime minister is optimistic.