British Prime Minister Gordon Brown said on Monday that it was clear that the current economic downturn was a global problem requiring global solutions, and he outlined the main points of a "route map" for recovery which was agreed at the G-20 summit in Washington, US, over the weekend. Brown was in London alongside European Commission president Jose Manuel Barroso.

He said the pair had been discussing how they could take forward the issues discussed at the G-20 summit.

Gordon Brown, UK Prime Minister said:
"First, we have a timetable that we have agreed for reform of our financial systems. Secondly, we are discussing the renewal of the whole international financial architecture, and we will help the International Monetary Fund as they deal with the problems of distressed economies.

Barroso was upbeat in his assessment, saying they had agreed "principles to underpin a new global financial order that helps avoid future crises and increases protection for consumers, savers and investors."

Jose Manuel Barroso, European Commission president said:
We have a long way still to go but it is clear that we are heading in the right direction in terms of the action that is being taken. We need new global regulatory architecture so all financial markets, products and participants are regulated, or subject to oversight, to boost transparency and to reign in excessive risk-taking and conflicts of interest."

Brown gave further hints that large-scale tax cuts could be expected in a budget update by the government next week.

AP