Comments from G20 meeting 

Following are comments on Saturday from Group of 20 finance ministers, central bank policymakers and officials meeting in Scotland. Skip related content

To see communique from the meeting, click on:

http://www.hm-treasury.gov.uk/int_g20_index.htm

U.S. TREASURY SECRETARY TIMOTHY GEITHNER

On bank tax:

"A day-by-day financial transaction tax is not something we are prepared to support."

"This idea (of a bank transaction tax) has been around for a long time ... I think frankly the experiences are mixed."

On exit strategy:

"It is too early to start to lean against recovery."

"If we put the brakes on too quickly we will weaken the economy and the financial system, unemployment will rise, more businesses will fail, budget deficits will rise, and the ultimate cost of the crisis will be greater." "With growth now underway and the financial fires winding down, the policy challenge is changing. The first stage was the emergency rescue."

"The next stage was catalysing private demand and business investment. This will require continued policy support."

BRITISH FINANCE MINISTER ALISTAIR DARLING

Asked if lack of Geithner support rules out transaction tax:

"No it doesn't. The U.S. like we do recognise that there are various issues you have to deal with and that a lot of work is required. I've discussed the issue with Tim over the past two days and I know his position and we know ours."

"By their very nature financial institutions are pretty global. The IMF discussed this at Pittsburgh. Of course we had discussions with individual countries. It's an issue where there's a lot of interest and where people understand that there's a lot of road to travel. The prime minister was absolutely clear we will not do that on our own."

On China's yuan:

"We didn't discuss the renminbi. I think that's a question for China rather than us."

CANADIAN FINANCE MINISTER JIM FLAHERTY

On transaction tax:

"That discussion is worthwhile having, in the context that financial institutions if they get in trouble should bear the consequences of their own demise. It's one of the ideas that's on the table, but is not particularly attractive to me as finance minister of Canada. We have been a government that has been reducing taxes."

EUROPEAN CENTRAL BANK PRESIDENT JEAN-CLAUDE TRICHET

"We had an occasion to tell what was our understanding of the progressive phasing-out of the non-conventional measures that have been decided on both sides of the Atlantic, but also by other central banks.

"All non-conventional measures have been designed to permit, when necessary, in a gradual fashion, a progressive phasing out of these non-conventional measures.

"But at this stage, we were exchanging views, and it appears also that on the other side of the Atlantic the same kind of progressive, gradual phasing out of non-conventional measures is envisaged."

"All of us, to my knowledge, have said that when needed, and where needed, there would be the phasing out of unconventional measures in a timely and gradual fashion ... All central banks and certainly the ECB are doing all that is necessary, but no more than is necessary."

INTERNATIONAL MONETARY FUND CHIEF DOMINIQUE STRAUSS-KAHN

"We can't go on with a system where some individuals take risks that finally all taxpayers, like you and me, have to pay for. The financial industry has made such big innovations that it is probably impossible to find a transaction tax that will not be avoidable by potential taxpayers. So it will be based not on transactions but on something else."

He said there were two possibilities for a bank sector tax, including a "possible windfall tax for 2009, a one shot thing."

The other would be a more long-term tax.

"I didn't plan to talk about this (today), but as Gordon Brown unveiled it, I decided to ... I am very happy to have the support of Gordon Brown on this."

SWEDISH FINANCE MINISTER ANDERS BORG

On climate change financing:

"There has been very limited flexibility from some of the countries, even if developed countries have been ready to set up substantial amounts -- there has been a limited flexibility from the other side to commit to fast track financing but also to a cooperative spirit in these issues."

"The discussion has been open and constructive and we have clarified positions, but we need to see more flexibility more commitment otherwise we will lend up with a very, very difficult situation in Copenhagen."

GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE

On climate change financing:

"We have not come as far as we had hoped even this morning."

"We have not reached an agreement. There is still some work to do. I hope everybody knows, that Copenhagen must not be a failure."

RUSSIAN FINANCE MINISTER ALEXEI KUDRIN

On macro assessment:

"This is the first fundamental step towards coordinating the work of all the economies ... It is very important that it will include countries which issue reserve currencies ... The main intrigue is when there will be recommendations and obligations but I think we are a long way from that stage."

On climate:

"There was a heated argument ... I think we should be very careful in approaching the possibility of piling on big new commitments onto developing countries as this can put a brake on the pursuing of other crucial tasks such as the eradication of poverty ... Today everyone avoided the numbers for the size of this (new climate) fund."

MARIO DRAGHI, FINANCIAL STABILITY BOARD CHAIR

On higher bank capital requirements:

"The FSB is fully aware of the concern expressed by the industry as far as timing of implementation, the impact of these measures and coherence across different jurisdictions. I am confident we will find a way to implement the three sets of measures without hampering the economy."

BRITISH PRIME MINISTER GORDON BROWN

On banking tax:

"There have been proposals for an insurance fee to reflect systemic risk or a resolution fund or contingent capital arrangements or a global transaction levy."

"I do not in any way underestimate the enormous and difficult practical and technical issues that will need to be overcome that a globally cohesive system requires and raises," Brown said.

"But I do not think these issues should prevent us from considering with urgency the legitimate issues I have discussed."

On framework for rebalancing economy:

"Together we need to reduce sources of instability, including volatile oil and commodity prices.

"To make a reality of the new model for economic governance, the G20 will need to articulate more clearly and precisely these broad policy objectives.

"So the agreement you are explicitly discussing today commits G20 countries for the first time to set objectives; to assess how our individual policies for economic development fit together; to evaluate whether these will deliver our objectives; and judge if further action is needed."

On growth:

"While recent indications of economic expansion give cause for cautious optimism they are not a reason to end economic stimulus prematurely," Brown told G20 ministers and central bankers.

(Reuters G20 newsroom)