G20 pledge on economic recovery

The G20 has pledged to keep emergency economic supports in place until sustainable recovery is assured.

They also agreed to launch a framework for acting together to rebalance economic growth, and establish tougher rules governing banks by 2012.

'Here in Pittsburgh, leaders representing two thirds of the planet's population have agreed to a global plan for jobs, growth and a sustained economic recovery,' British Prime Minister Gordon Brown said.

US President Barack Obama's first turn hosting a major summit ended on an upbeat note, with leaders claiming victory in stopping the recession from turning into a depression.

The Pittsburgh gathering was the third summit in a year for the G20, which said it would now be the 'premier forum' for economic cooperation, supplanting the Western-dominated G7 and G8, which have been the primary international forums for decades.

The move was a clear acknowledgment that fast-growing countries such as China and India now play a much more important part in world growth.

Disclosure of a second Iranian uranium enrichment plant gave Obama, with the leaders of Britain and France at his side, an opportunity to press for united action against Tehran over its disputed nuclear program.

Tough economic tasks remained.

The G20 vowed not to return to the 'reckless behavior' blamed for triggering the financial crisis, which exploded two years ago when failing US mortgage loans caused catastrophic losses at financial firms around the world.

In addition to the regulatory reforms, which are supposed to be developed by the end of 2010, the G20 took aim at lavish pay packages for bankers, although it was unclear whether the agreed measures would establish a firm cap on compensation.

The G20 leaders also agreed to shift some voting power at the International Monetary Fund to underrepresented countries such as China from rich ones, another sign that the developed world had accepted the shifting balance of economic power.

In the statement, the G20 endorsed a plan to phase out fossil fuel subsidies as a way to combat global warming, and to step up efforts to complete the Doha round of trade talks.

Kept at a distance from the G20 convention center, about 10,000 protesters marched against capitalism and the G20's agenda, some of them chanting 'You're sexy, you're cute, take off that riot suit' to the police.

There was only one arrest today and the mood was buoyant, in stark contrast to protests on Thursday when there were clashes with police and dozens of arrests.