European Union: Coordinate in exit strategies

European Union (EU) leaders have two major topics to push at the summit: coordination in exit strategies and renewed efforts to reform financial markets.

"The G20 should agree on a coordinated and differentiated exit strategy to ensure sustainable public finances," EU President Herman Van Rompuy and European Commission President Jose Manuel Barroso said in a joint letter to G20 partners Wednesday.

Concerning financial reform, Van Rompuy and Barroso called on the G20 to reaffirm its commitment to strengthened financial regulations in such fields as capital requirements for banks, remuneration policies, convergence of accounting standards and the fight against tax havens.

The two leaders also repeated the EU's call for a global deal on bank levies and urged G20 leaders to explore the possibility of introducing a global financial transaction tax, which would prove to be more controversial.

India: Bank tax not fitting for India

Indian officials have expressed belief that more voices from emerging economies will be heard at the summit and differences will come up between emerging economies and developed countries concerning the policies needed to bring about a resumption of growth of the global economy.

India holds diverging views from those of the United States and the EU on the policies to be taken next in the perspective of global economic revival, the officials said.

Indian officials have also made it clear that India does not need to increase taxes on its banks because the financial institutions are an integral part of the economic growth and have been going on in good order since the financial crisis broke out.

China: Cautious policy-making to prevent future risks

A senior Chinese official said that at the Toronto summit the leaders are expected to discuss a wide range of issues, including the world economic situation, the European debt crisis, reform of international financial institutions, world trade and the strengthening of financial regulations.

"China hopes that the G20 members at the Toronto summit would fully implement the Framework for Strong, Sustainable and Balanced Growth and enhance communication and coordination of macro-economic policies to support the global economic recovery," Cui Tiankai, vice foreign minister of China, said at a press conference Friday.

He said that G20 members should push the IMF to finish a new round of quota reforms to give more representation to emerging markets and developing countries before the Seoul summit in November. The members also should improve the international financial system and deepen the reform of the international regulatory system.

In addition, the G20 leaders also should pay greater attention to development problems and provide political support to the United Nations' high-level meeting on the Millennium Development Goals in September and oppose trade protectionism and promote the completion of the Doha round of trade talks, Cui added.