ST. PETERSBURG, Russia, Sept 6 (Reuters) - Following are key
excerpts from a communique issued by Group of 20 leaders at the
close of an annual summit in St. Petersburg.
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Our most urgent need is to increase the momentum of the
global recovery, generate higher growth and better jobs, while
strengthening the foundations for long-term growth and avoiding
policies that could cause the recovery to falter or promote
growth at other countries' expense.
We understand that sound and sustainable economic growth
will be firmly based on increased and predictable investments,
trust and transparency, as well as on effective regulation as
part of the market policy and practice.
GLOBAL ECONOMY AND GROWTH
The euro area commits to strengthen the foundations for
economic and monetary union, including through further efforts
to strengthen bank balance sheets, reduce financial
fragmentation and moving ahead decisively and without delay
toward a banking union.
Advanced G20 countries agree to maintain a flexible approach
in implementing their fiscal strategies, while remaining
committed to sustainable public finances. Facing increased
financial volatility, emerging markets agree to take the
necessary actions to support growth and maintain stability,
including efforts to improve fundamentals, increase resilience
to external shocks and strengthen financial systems.
Monetary policy will continue to be directed towards
domestic price stability and supporting the economic recovery
according to the respective mandates of central banks. We
recognize the support that has been provided to the global
economy in recent years from accommodative monetary policies,
including unconventional monetary policies.
We remain mindful of the risks and unintended negative side
effects of extended periods of monetary easing. We recognize
that strengthened and sustained growth will be accompanied by an
eventual transition toward the normalization of monetary
policies. Our central banks have committed that future changes
to monetary policy settings will continue to be carefully
calibrated and clearly communicated.
We reiterate that excess volatility of financial flows and
disorderly movements in exchange rates can have adverse
implications for economic and financial stability, as observed
recently in some emerging markets. Generally stronger policy
frameworks in these countries allow them to better deal with
these challenges. Sound macroeconomic policies, structural
reforms and strong prudential frameworks will help address an
increase in volatility. We will continue to monitor financial
market conditions carefully.
We commit to cooperate to ensure that policies implemented
to support domestic growth also support global growth and
financial stability and to manage their spillovers on other
We reiterate our commitments to move more rapidly toward
more market-determined exchange rate systems and exchange rate
flexibility to reflect underlying fundamentals, and avoid
persistent exchange rate misalignments. We will refrain from
competitive devaluation and will not target our exchange rates
for competitive purposes. We will resist all forms of
protectionism and keep our markets open.
Achieving a stronger and sustainable recovery, while
ensuring fiscal sustainability in advanced economies remains
critical. As agreed, all advanced economies have developed
credible, ambitious, and country-specific medium-term fiscal
These strategies will be implemented flexibly to take into
account near-term economic conditions, so as to support economic
growth and job creation, while putting debt as a share of GDP on
a sustainable path. A number of emerging market economies have
also laid out key elements of their strategies to promote fiscal