Global leaders at the upcoming summit of the Group of 20 (G20) major economies in the U.S. city of Pittsburgh should urge the implementation of a new set of international financial rules, Italian officials and experts have said.

NEW GLOBAL FINANCIAL RULES EXPECTED

Mario Baldassarri, a center-right senator and former junior economy minister, told Xinhua in a recent interview that "the meeting must focus on forging modern financial governance."
He pointed out that Pittsburgh follows other G20 summits and this time world leaders can't afford to fail.
Baldassarri explained that forging new governance is strictly linked to the reform of international financial institutions.
"The world needs a new Bretton Woods agreement, a reformed International Monetary Fund (IMF), World Bank and World Trade Organization to guide global economy," he said.
In order to achieve such goals, he said that a "greater coordination is needed among G8 and G5 countries."
The upcoming G20 meeting scheduled for Sept. 24-25 in Pittsburgh, the United States, will discuss the issues of global economic revival, financial speculation and bankers' bonuses. The agenda is also likely to include the reform of the international financial system, clean energy and aid to developing countries.
Alberto Mingardi, director of the Turin-based Bruno Leoni Institute, expects the summit to define new financial rules to tackle speculation, with respect primarily to the fight against tax havens and setting limits to bankers' pay and bonuses deferral.
However, Mingardi envisages no corporate governance agreements to be discussed at the summit.
"I seriously doubt world leaders will reach concrete decisions on banks' capital requirements. Central bankers have discussed this issue but each country has a different approach and the banking system is still undergoing stabilization," he said.
Axel Berkofsky, a researcher at the Milan-based Institute for International Political Studies, said the G20 summit should focus on the implementation of new rules and regulations to simplify the financial system and increase banking controls.
He believes the summit is heading towards success because "the worst of the economic downturn is over" and expects stock markets to positively react to the outcomes of the two-day meeting.

MORE IMPORTANT ROLE FOR CHINA

According to the experts, China is set to play an increasingly important role at the G20 meeting.
Baldassarri praised the Chinese government's proposal of updating the IMF, which "has been very wise."
Meanwhile, Mingardi expects China to further talk on global trade and protectionism.
"The economic crisis has affected Asia much less than the rest of the world and China is interested in maintaining open trade and investments' flows, rather than promote tight financial rules," he said.
Berkofsky praised China for having responded positively to the international financial crisis by increasing internal consumption rates and reducing exports, saying the country has the potential to play a greater global role in the future.
"Economic news coming from China is very positive and show that the country is supporting global recovery: this will be China's message at the G20 meeting in Pittsburgh," said Berkofsky.
Francesco Daveri, an expert at online daily LaVoce.info, added that China has become a big player and will thus enjoy greater credit at the G20 meeting.
"If on the one hand China might not insist too much on stricter financial regulations, on the other hand it will openly oppose the introduction of commercial restrictions," Daveri said.

LEADING ROLE FOR EUROPE

Italy, which holds the current G8 presidency, is expected to be a front-runner at the summit.
Baldassarri expects Italy can play a central role in promoting a European-coordinated response, saying "It's essential that the European Union (EU), which is a global economic player, speak with one voice and Italy is good at mediation."
Mingardi has high expectations for Italy's central banker Mario Draghi, currently head of the Financial Stability Board.
"Draghi can do a lot in boosting a new financial global governance," he said.
Daveri said, "Italy and the European Union bring the example of having well-reacted to the crisis and can thus give general financial indications on which approach is the best to undertake."
"Both (Italy and the EU) can play a major role in injecting financial sensibility in world markets so as to avoid future turmoil," said Daveri.
The G20 includes the Group of Eight -- the United States, Germany, Japan, France, Italy, Britain, Canada and Russia. Other members are the European Union, Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Saudi Arabia, South Africa, the Republic of Korea and Turkey.