At an informal meeting in Brussels on 17 September, 27 Heads of State and Government established the EU's position for the G–20 summit in Pittsburgh on 24 and 25 September.

The European leaders took stock of measures taken to tackle the financial crisis, and of the global economic situation which is starting to show signs of recovery. The improvement has been achieved thanks to massive state support for the financial sector, leading to large public deficits. The EU will work towards exit strategies that can pave the way for a return to sound public finances. A sustainable economy is a prerequisite for saving employment.

Another topic to be discussed in Pittsburgh will be the reform of the international financial system. Also, remuneration practices in the financial sector should be reviewed, linking perfomance and output to avoid excessive risk-taking, and supervision of financial markets and institutions must be strengthened. The EU will push for the adoption of binding rules for the financial sector concerning compensation and bonus schemes, as well as disincentives for risky business activities.

Further on the agenda was climate finance. There is an urgent need to reach a successful outcome at the UN climate conference in December, but negotiations are progressing too slowly. "We need to stop the acting and start the action", Prime Minister Reinfeldt stated. Financial resources must be scaled up to reduce the effects of global warming, and all countries, except the least developed, are called upon to contribute.

Background

The G20 summits are traditionally attended by the finance ministers and central bank directors from 19 countries, plus representatives of the EU and other international organisations. However, in response to the financial and economic crisis, a G20 summit with heads of state and government was convened for the first time in Washington in November 2008.

The name of the meeting group, G20, is an abbreviation of ‘Group of 20’ and refers to the world’s 20 largest economies. The G20 was formally established in 1999 as a way to gather the world's largest industrialised nations and developing nations to discuss global economic issues.

The G20 comprises Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the USA, along with the EU, represented by the country holding the Presidency, in this case Sweden, and the European Commission.