Darling relieved at 'step forward'

Saturday, 14 March 2009 12:00 AM

By Alex Stevenson

Alistair Darling sought to play up the achievements of the G20 finance ministers' meeting this afternoon, telling reporters the commitments gained represented a "major step forward".

The chancellor was speaking after ministers and central bankers converged for the two-day summit near Horsham, Sussex.

A communiqué from the finance ministers and central bank governors stated further action had been agreed to restore global growth and support lending.

It also outlined a number of reforms to strengthen the global financial system, without specifying concrete details.

Mr Darling said he believed a "very clear sense of direction" had emerged from the summit.

"We agreed a significant amount of progress. There was a great deal of consensus," he said.

"If you'd asked me nine months ago whether there was any chance of getting an agreement like this, the answer would have been no. What's changed now is there is no one who doesn't realise this is the biggest challenge the world's faced for generations."

He continued: "The clear message we have today is we have an opportunity here - and a huge responsibility - to support our economies here as well as individually."

The communiqué made clear fiscal action beyond interest rates was justified, including "unconventional policy instruments".

But Mr Darling refused to be drawn on the precise details of what these would represent.

"The important step forward is countries will have to make their own assessment. but the message is. countries stand ready to do what is necessary," he added.

The chancellor later said "governments need a menu of options" when considering whether to look to the public or private sector.

Following the conclusion of today's meetings the government's effort will focus on preparations for the G20 leaders' summit, which takes place in London on April 2nd.

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• economy and finance