Meeting of the twenty largest economies in Cairns, Australia. Announced the Global Infrastructure Initiative, a global database for investment opportunities. Underlying tension between the USA and Germany, while Schauble states: “The deficit does not create growth.” Weidmann criticized the plan Draghi
CAIRNS – The G20 baton on the growth and the EU (at least partly) the ECB on monetary policy, while Germany Italy wand of reform and deficit. A Cairns, Australia, was held a meeting of the Big 20, which addressed the hot topics of the global economic crisis, has set new goals for growth and launched a new initiative for infrastructure.
In the long final communiqué of the meeting, whose participants represent approximately 85% of the global economy, 20 are said to be closer to the goal of pushing the global GDP of 2% (1.8% for accuracy) or more than two thousand billion over the next five years and will focus on infrastructure to achieve that goal. Specifically, the G20 has set up a project called Global Infrastructure Initiative, a huge database to help investors find and participate in projects around the world, through a shared platform.
In the final communiqué reads although growth has improved in some key economies (the thought goes to the USA) the increase in global GDP remains unbalanced and below the level needed to create jobs. This is the situation in Europe, he did reiterate the sidelines of the meeting of the EU Economic Affairs Commissioner Jyrki Katainen that “Europe will do its part” to ensure that the G20 can achieve its aims. Katainen added: “We need bold reforms at European and national level.” But there are not only the reforms, hinted yesterday Treasury Secretary Jack Lew:
the United States are back to ask Japan and Europe to do more to boost growth, starting from Germany that could use for this purpose its huge trade surplus.
EUROBAROMETER / The myth of austerity sinks the German growth MAURIZIO RICCI
Chapter deflation , where the ECB probably is not doing enough: “Monetary policy – continues in the conclusions – in advanced economies continues to support the growth and should address, in a timely manner, deflationary pressures, where necessary, in line with the mandate of central banks. ” Conclusions that led a member of the board of the European Central Bank to hasten to say: “Partners – said Benoit Coeuré – have given broad support to the measures taken by the ECB. Nobody asked us to do more,” and in any case ” it is too early to say whether additional measures are necessary, “and reiterated that” the persistent weakness in demand is the central theme. “
But by the hawks Germans arrive two shots to Italy. The first to speak is the president of the Bundesbank, Jens Weidmann: “It ‘s crucial structural reforms. Attention should not be on short-term measures.” The second is the German finance minister Wolfgang Schauble: “Deficit highest did not translate into higher growth. If it is the opposite.” That is: “To serve the growing sustainable budgetary policies and investments.” A response to the demands on the flexibility of the French and Italian public accounts (although Italy has repeatedly stated that it will remain within the constraint of 3% in the deficit / GDP ratio) Europe on the one hand and promises that Germany doing everything to diminish.
A stick and a carrot that will transform – Italian perspective – in greater clarity at the next European summit, when Matteo Renzi wants to present with the labor reform, which in fact is pressing on the accelerator, for unlock hundreds of billions of investment of the EU.
The other conclusions of the summit. At the G20 to be held in November in Brisbane in Australia will reach the final proposal drawn up by the Financial Stability Board on banks ‘too big to fail’ (too big to fail). And ‘what we read in the final communiqué of the G20 finance summit. The measure received a broad consensus among the members of the group and aims to reduce “systemic risk” and to strengthen the capacity of the large international banks to absorb losses.
The G20 is said also concerned about the costs Human Ebola and the potential for serious impact on the growth and stability of the economies affected. “It ‘s important to a coordinated international response.” The G20 is also “aware” of the possibility of excessive risk taken by financial markets, especially in an environment of low interest rates and low volatility of asset prices.
The meeting also approved the implementation plan for the global standards for automatic exchange of tax information, developed in conjunction with the OECD to combat tax evasion. The countries will begin to automatically exchange tax information with each other and with third countries between 2017 and 2018 The agreement is greeted positively by the Minister of Economy Pier Carlo Padoan: “An example of structural reform on an international scale: the new rules that change behavior and produce tangible results. ”
Criticism of Buba to Draghi. Bundesbank President Jens Weidmann has criticized today in an interview with German newspaper Der Spiegel , the plan desired by the ECB Mario Draghi, who has not had a very positive debut. But Weidmann is not a problem since the results of philosophy: “This plan goes beyond previous attempts to encourage banks to provide more loans and may decrease the risk of the banks at the expense of those who pay taxes.” The plan, called ‘Tltro’ ( targeted long term refinancing operations ), is a maxi-lending banks granted to four years at a rate of 0.15%, but is subject to the provision of loans to ‘real economy.
“The way I see it – continues Weidmann – it is a fundamental and drastic change in the monetary policy of the European Central Bank. No matter how you think, the majority of the members of the Council are making you understand that the monetary policy of the ECB is ready to go ahead and enter into a new territory. “
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