A year after the worst financial crisis since the 1930s erupted and with countries like Japan, France and Germany now out of recession, the G20 has shifted from firefighting to ensuring recovery is sustained and deep-rooted.

But politicians warn there is no room for complacency and are also debating when and how to reverse the massive fiscal stimulus which states pumped into their economies after the credit crunch.

Most agree it is important to start preparing exit strategies now, but emphases differ on when they should be implemented.

US Treasury Secretary Tim Geithner, while downplaying hopes for concrete results from Friday and Saturday's meet, has reportedly said exit strategies are 'very important to confidence' on the financial markets.

Swedish finance minister Anders Borg said Friday that world economies were still 'standing in the ashes' of economic catastrophe. 'When you've just come out of the ashes, it's not time to call off the fire department,' he added.

'I think it's very reasonable that during 2010, we will keep both monetary and fiscal policy expansionary but having said that, it is also very, very important that we start to talk and plan our exit strategies'.

Meanwhile, major emerging economies Brazil, Russia, India and China said it was 'too early' to talk of an end to the crisis. Brazilian finance minister Guido Mantega added that 'the exit should be gradual'.

Also at the meeting, the US will press for stronger capital and liquidity standards for banks so they can absorb any future losses without needing state help.

'(The) regulatory framework failed last year,' Mr Geithner wrote in Friday's FT. 'Strengthening capital requirements is an essential part of a broader effort to modernise our regulatory framework so that the financial system is strong enough to withstand the failure of large, complex institutions.' -- AFP