While world leaders pledged to work as a team Saturday to tackle the global economic crisis, Barack Obama said the game plan should include aid for both the ailing auto sector and beleaguered home owners.
"For the auto industry to completely collapse would be a disaster in this kind of environment," the U.S. president-elect said in an interview with "60 Minutes," which will air Sunday.
"So it's my belief that we need to provide assistance to the auto industry. But I think that it can't be a blank cheque."
Obama's comments came after leaders from the world's 20 largest economies made an unprecedented declaration in Washington Saturday to fight the current economic crisis together and stave off future problems.
While Obama, who sent emissaries, did not personally attend the emergency G20 meeting in Washington, his administration will implement the reforms which leaders laid out during the weekend summit.
More importantly, Obama's team will be responsible for working out specific policies to achieve goals like stiffer regulation, increased government spending and greater market transparency.
However, for Obama, helping out homeowners hit hard by the sub-prime mortgage crisis last year and the ongoing wave of foreclosures this year is also important.
"We have not focused on foreclosures and what's happening to homeowners as much as I would like," Obama said.
"We've got to set up a negotiation between banks and borrowers so that people can stay in their homes. That is going to have an impact on the economy as a whole."
Obama added that over the next two months, his team will decide which reforms and policies get priority once he takes over the White House in January.
'A nearly unanimous accord' says Harper
Despite the great diversity of national leaders meeting in Washington, Prime Minister Stephen Harper said there was "a nearly unanimous accord" on the major subjects and that all nations will have to work together.
"We all understand that what began as a financial crisis is now clearly a worldwide economic crisis," said Harper, adding that "there are difficult times ahead for all of us in the world economy.
"Canada has so far been sheltered from most of those (problems), but will not be sheltered entirely."
The declaration statement issued Saturday also includes agreed-upon resolutions such as:
- pledges to develop government spending plans to stimulate the economy
- more openness and better monitoring of international financial markets
- an early warning system to detect and prevent future economic crises
- establishing a so-called college of supervisors, made up of financial regulators from a number of countries
- increased liquidity to developing countries who need credit to ensure financial growth
Like Harper, U.S. President George Bush also welcomed reforms to financial systems, but both leaders said that government regulation must be balanced with free market principles.
"We're adapting our financial systems to the reality of the 21st century," Bush said, noting that new rules must not destroy the "incentive to innovate."
For example, Bush said that credit default swaps should be processed through centralized clearing houses, instead of the current practice of decentralized trading.
"Transparency is very important, so that the investors and regulators are able to know the truth," said Bush.
Major gathering
The summit is the largest such meeting in more than 10 years as the leaders of the world's economic powers try to prevent a slide into a global financial depression.
The G20 leaders were discussing how to jumpstart the sputtering economy and the possibility of imposing greater government control over banks and other financial institutions.
Both Bush and Harper said that trade barriers between countries would only exacerbate the global problems.
"One of the dangers during a crisis such as this is that people will start implementing protectionist policies," he said.
Other world leaders, such as British Prime Minister Gordon Brown, have advocated for more regulation of the world's financial markets and co-ordination between countries in tackling the economic crisis.
"These are difficult talks," Brown said Saturday. "I think it's obviously important to move people to decisions ... and what can be done."
Leaders also hope this weekend's summit in Washington will produce measures that will prevent financial meltdowns in the future.
German Chancellor Angela Merkel said "there is a great common will to ensure that such a crisis is not repeated."
With files from The Associated Press and The Canadian Press
