G20 must guard, strengthen economic recovery - Obama

The top priority of the upcoming G20 summit must be to "safeguard and strengthen" the global economic recovery, US President Barack Obama wrote in a letter released yesterday.

"We worked exceptionally hard to restore growth; we cannot falter or lose strength now," he said in a message to G20 leaders ahead of the summit scheduled for June 26 - 27 in Toronto.

Mr Obama said the meeting would take place "at a time of renewed challenge to the global economy," and laid out an action plan of issues he hopes the summit will tackle.

He called for a commitment to "sustainable" public finances, and warned that he was "concerned by weak private sector demand and continued heavy reliance on exports" by some nations within the Group of 20.

Mr Obama also urged concrete action on financial reform, offering a checklist of items that should be embraced, including stricter capital requirements, derivatives oversight and a mechanism for winding down global financial firms.

The G20 sought and won the role of international forum for coordinating the response to the global economic meltdown, and Mr Obama reminded the organisation of its responsibilities.

"Together we designated the G20 as the premier forum for international economic cooperation," he wrote in the letter dated June 16, but released by the White House yesterday morning.

"It is important that the G20 demonstrates its continued determination to work collectively to address the renewed challenges facing the global economy."