G20 agrees next steps on bonuses, post-crisis blueprint

AFP on Yahoo ^ | 9/5/09 | Katherine Haddon and Guy Jackson

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LONDON (AFP) – The G20 vowed Saturday to maintain emergency measures to fight the world economic crisis, warning it was not over yet, while tensions between Europe and the United States remained over bankers' bonuses.

After a meeting in London preparing for a leaders' summit later this month, finance ministers said they agreed fresh measures to keep the world economy on the right track, a year after it teetered on the brink of collapse.

But they warned there was no room for complacency.

"We remain cautious about the outlook for growth and jobs," the ministers said in a communique.

"We will continue to implement decisively our necessary financial support measures and expansionary monetary and fiscal policies... until recovery is secured."

US Treasury Secretary Tim Geithner also urged caution, saying that while global economic growth was "underway", there remained "significant challenges" ahead.

"Actions (by the G20) have pulled the global economy back from the edge of the abyss," he said. "However, we still face significant challenges ahead."

The head of the International Monetary Fund, Dominique Strauss-Kahn, warned world leaders were "just seeing the end of the tunnel" after months of economic turmoil.

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British Finance Minister Alistair Darling speaks at a press conference following the G20 Finance Ministers meeting in London. G20 finance ministers pledged to maintain emergency measures to reverse the global economic recession -- including action on bankers' bonuses -- saying the crisis was not over yet. (AFP/Geoff Caddick)

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Finance ministers, central banks governors and other officials pose for a group photograph at the G20 Finance Ministers meeting at the Treasury, in central London September 5, 2009. The G20 group of advanced and emerging nations have agreed on some curbs on bankers' pay, such as clawback for poor performance and forcing banks to disclose how much top earners receive, a G7 source said on Saturday. REUTERS/Lefteris Pitarakis/Pool (BRITAIN BUSINESS POLITICS)