The G20 agreed on stimulus measures, to the chagrin of Germany – L’Express

The meeting was open to a charge of violent German Finance Minister Wolfgang Schäuble against stimulus policies. He believed that fiscal stimulus “have lost their effectiveness” and the ultra-accommodative monetary policies “could become counterproductive” in view of their potential adverse effects.

At the end of two days in Shanghai, the central bankers of the G20 finally called Saturday possible to use “all tools” to support the economy, while the global recovery appears “uneven and short of the ambitions “and that particular burden on growth” the shock of a possible exit from the United Kingdom to the European Union “.

Flexibility

The G20 countries have therefore agreed to use monetary and fiscal stimulus policies in order to strengthen a global economy down according to a statement released draft Saturday by Bloomberg News. The text particularly stresses the need for major central banks to continue or even increase their already ultra-accommodative policies.

“Monetary policy will continue to support activity and ensure price stability”, even though they alone can “lead to sustainable growth,” said the statement, whose final will be unveiled Saturday night. Fiscal policy, which is for states to inflate their public expenditure in order to consolidate the business, should be implemented “flexibly”, says the draft statement.

“Do more” to restore growth

“The central bankers said they were ready to do more if necessary” even if monetary policy “can not solve everything,” confirmed Saturday the French Finance Minister Michel Sapin. Certainly “no one asks a concerted fiscal stimulus globally, contrary to what has been decided in 2009″ in a financial crisis, he added. However, “we request that countries in a better position” take the opportunity to act more vigorously, he insisted.

Washington lobbied for months for States that have surplus use to support demand, thinly veiled reference to Germany. There can be “historic and cultural reluctance” of some countries to pass up public spending, acknowledged Michel Sapin, in a clear evocation of fiscal orthodoxy Berlin. But “we are in a situation that makes it necessary to use all the room for maneuver when they exist,” he insisted.

“potential impact” of Brexit

In fact, the text of the G20 list the warning signs of plummeting commodity prices to market turbulence, while fizzle engines of global growth. The draft communique also lists potentially destabilizing geopolitical risks, pointing the influx of migrants in Europe and “the potential impact of an output of the United Kingdom of the European Union”, which will be settled by the June 23 referendum.

“We must do more to achieve our common goals” of growth “strong and lasting”, the ministers go. “We will use all the tools – monetary, budgetary and structural – individually and collectively” to “safeguard and strengthen the recovery.”