Barroso hails G20 'unique opportunity'

European Commission President Jose Manuel Barroso today played down expectations for this week's G20 summit – but insisted it had to “make a difference”.

Mr Barroso, who travels to London tomorrow to join world leaders for Thursday’s talks, warned: “We don’t expect miracles.”

But he insisted that the world was working together to solve the crisis, and had a “unique opportunity to re-shape globalisation”.

He also said that more summits will be needed on the issue, including at least one more this year, because “this is a process”.

The Commission President – who recently declared it was time for actions rather than words – told a press conference in Brussels: “The EU has defined a common message for this G20 summit. It is a message that can and will engage our partners, for the sake of citizens’ jobs and prosperity here in Europe, and also worldwide.”

The meeting would be judged on five issues on which agreement was needed: worldwide co-ordination of “fiscal stimulus”; a “confidence stimulus” to create lasting demand; a “global governance stimulus”; a “trade stimulus”; and a “development and climate change stimulus”.

Mr Barroso went on: “The G20 will not end this crisis overnight. But it can and must make a difference.

“For the first time ever in an economic crisis, the world is working together - and not against each other. The EU is leading by example.”

“Citizens will judge the stimulus on outputs, not inputs. What matters is results – jobs saved and jobs created.”

Mr Barroso continued: “The challenge for the G20 is swift, coherent and global implementation of financial market reform.

“That is why I believe the G20 should make specific commitments on capital requirements, hedge funds, credit ratings agencies, accounting standards and on remuneration.

“We want action on tackling tax havens and uncooperative jurisdictions. We also need sanctions with teeth, to protect not only EU taxpayers but also developing countries who are deprived of crucial tax revenue.”

He added: “We need to spend now – but we need to be able to pay that money back. Taking on unsustainable debt would damage all our futures. The G20 conclusions must reflect the consensus on the need for fiscal sustainability.”