Group of Twenty: Priority for growth and employment

Group of Twenty: Priority for growth and employment

21-07-2013 09:00 AM

Group of Twenty included Bundy growth and jobs by austerity in the hierarchy of priorities, in their quest to restore the balance of the global economy. And promised to exercise caution in case of any change in policy, to avoid deviation derail the economic recovery due to fluctuations in global markets.

The finance ministers of Member States in the group yesterday in meetings عقدوها in Moscow, that growth and employment are «priority in the short term in the face of an economic recovery« weak and uneven. They stressed in the final statement on the need to 'get fiscal discipline over the medium term in order to reduce budget deficits, and enjoys credibility.
The ministers declared a capital group, which includes countries rich and emerging, in preparation for the summit of leaders the Group of Twenty in St. Petersburg in September next, «Support Action Plan Organization Economic Cooperation and Development against strategies tax used by multinational corporations to evade taxes».

The organization suggested the application of this plan within two years, but ministers have contented themselves to express their desire to provide «points regular progress on the development of proposals and recommendations for the application of the 15 points contained in the plan.

The statement said that the ministers' agreed to make changes in monetary policies will be carefully controlled and clearly stated. And raised the thick gradual exit from the asset purchase program the U.S. Federal Reserve (central bank), turmoil in the financial markets in some emerging countries, such as Russia or Brazil, which شددتا to address the Group of Twenty to this problem.
The finance ministers and central bank governors put the finishing touches to a joint statement, the participating delegations drew to the lack of amendments to remember, after meeting at a dinner on Thursday evening. The statement praised the support extended to global growth «thanks to monetary stimulus measures taken by some central banks.

The International Monetary Fund (IMF) in a working paper prepared for the Moscow meeting, market forecasts, warning of «the possibility of worsening turmoil in the financial markets in the event of policy makers يتوخ not careful.



He acknowledged French Finance Minister Pierre Moscovece, that «does not automatically agree on the balance to be struck between reducing the deficit in public budgets and support economic activity. He said that the results of the Group of Twenty on growth «is sufficient remains. He stressed that «is the goal of deficit reduction over the medium term, but short-term priority is to grow and grow growth». He asked U.S. Treasury Secretary Jacob Lu, of the Europeans to reconsider their policy of austerity and doing more for growth and employment.

In terms of jobs, reach and labor ministers in the Group of Twenty meeting for the first time at the same time, to «extract common», announced by the Minister of Labour Michel Saban, stressing that «these measures to address the financial crisis have had significant implications for the labor market». But Germany is still insisting on the importance of reducing public debt, and explained Moscovece that the final statement of the Group of Twenty «will not set any numerical target for reducing debt and public deficits», say: a «are not in the process of this step, and the priority of the Group of Twenty is the growth».

On the other hand, he drew the Minister of Finance Russian Anton Saloanov, to the statement emphasizes the importance of «high level of funding for long-term investments, the Group of Twenty will determine the task of developing new ways of funding by 2015.

The issue of investment is mainly for emerging countries, which raises the current slowing in the world concern. The International Monetary Fund (IMF) cut earlier this month, its forecast for growth in China, Brazil and Russia, which are engines of the global economy in recent years.

BRICs
On the sidelines of a meeting of finance ministers and central bank governors of the Group of Twenty, met negotiators bloc countries «Brix» (Brazil, Russia, India, China and South Africa), and discussed among many topics, the establishment of a bank for the development of a special this bloc, costing finance projects in infrastructure especially infrastructure. These countries face, to the slowdown, the implications of the policy of the U.S. central bank, which plunges years ago the financial system with liquidity, which will be re-invested in the form of a thick in emerging markets, where returns are higher.

But ultimately this policy's stated support for the activity caused a large withdrawal of capital from developing economies, what happens disruption in the financial markets and the impact on their currencies.

[You must be registered and logged in to see this link.]