1.75 Solving the euro area crisis is a necessary condition for restoring confidence, but it is not sufficient on its own to deliver a sustainable global recovery. At the G20 summit in Cannes, world leaders agreed an action plan for growth and jobs, which includes many of the things that the UK is already doing: clear and credible fiscal consolidation; monetary activism; removing barriers to business; and job creation. The action plan also identified a group of countries where, unlike in the UK, public finances remain relatively strong (Australia, Brazil, Canada, China, Germany, Korea and Indonesia) who could take discretionary measures to support domestic demand as appropriate, while maintaining their medium-term fiscal objectives.
1.76 The action plan also agreed to take further steps to resolve the imbalances within and between their economies to support strong, sustainable and balanced growth, including to:
• implement clear, credible and specific measures to achieve fiscal consolidation;
• take further steps towards promoting domestic demand in countries with large current account surpluses; and
• move more rapidly toward market-determined exchange rate systems.
1.77 The G20 committed to implement its financial regulation agreements and agreed a new package of reforms for systemically important financial institutions, in particular introducing increased loss absorbency for globally systemic banks.
1.78 The UK secured an important objective when the G20 critically agreed to halt the slide towards protectionism. It reaffirmed its pledge not to take protectionist actions; committed to roll back any new protectionist measures that may have arisen; and reaffirmed its determination to refrain from competitive devaluation of currencies. The G20 agreed to pursue fresh, credible approaches to furthering negotiations in the Doha Development Round, beginning at the upcoming Ministerial meeting in Geneva. The global challenges to economic prosperity require global solutions. The Government will continue to engage with its international partners to deliver the best outcome for future global prosperity.