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the storm comes, but we are ready, said in substance finance ministries G20 gathered Saturday 23 and Sunday 24 July in Chengdu, in west of China. The final preparatory meeting before the G20 meeting in Hangzhou in early September was also the first of the G20 Finance Ministers from the British vote in favor of the release of the European Union (EU). A decision that “strengthens Uncertainties” for the global economy, said the members of the meeting in a final statement.
Specifically, the Brexit could have cost a tenth of point of growth in the global economy. Tuesday, July 19 the International Monetary Fund (IMF) lowered its forecast for global growth by 0.1 percentage points for this year and next year to 3.1% and 3.5% respectively.
the meeting aimed to face the crisis collectively, the ministers tried to reassure anyway: EU countries “are well positioned” to counter “proactively “ the possible economic and financial impact of Brexit the statement said.
” Many have stressed the global economy and finance have fairly resilient to the shock of Brexit “, explained Michel Sapin, french Minister of Finance, in a telephone interview after the meeting. “ The coordination between the central banks of the G20 is certainly an element that has significantly reduced the effects of this Brexit. It remains to organize cooperation to limit the medium- and long-term effects “, said the minister, who said that the G20 was created in response to the 2008 crisis.
Read also: Brexit: the British economy collapsed in July
recovery Plan
Passed by the British, the output their country in the European Union will not take place before the end of the year, said the new Prime Minister, Theresa May, Thursday, July 21. But its effects are already being felt: the activity of the country collapsed in July, according to a study
In the bay, the UK does not rule out a recovery plan.. “We have the option of a fiscal response, which we will do in our own calendar around our Autumn speech” (the amending budget presented by the government), Philip explained to Sunday . Hammond, Chancellor of the Exchequer
According to the French finance minister, who met several times with his British counterpart, the UK is far from having a plan: “(Hammond) said, we absolutely were not prepared for this event. We discover the consequences, the technical problems involved, and the types of negotiations that must be fought. “
The IMF also stressed the need for increasing public investment to support growth. While the G20 invited to use all the tools possible (monetary, fiscal and structural), the IMF calls on States who can to invest in infrastructure, “to directly boost demand” . The Fund cites the United States, Canada, Australia, and Germany.
tax on financial transactions
The evocation of Germany IMF does not have pleased Wolfgang Schäuble, the finance minister of the country, an ardent defender of financial orthodoxy, but the issue is not new. In February, the German minister had replied that fiscal stimulus had “lost their effectiveness” . If his official position has not changed, according to Mr. Sapin, in fact, things change. “Public spending increases in Germany at the moment, not least that given the expenditure on the reception of refugees. “
The German minister also promotes a global tax on financial transactions. As part of the fight against the erosion of tax bases, one of the areas of work of the G20, Schäuble tried to pass this idea, often mentioned but never adopted. “Everyone agrees that we should do in the world, but nobody tried” he launched.
His counterpart American, Jacob Lew, has meanwhile called for an end to the “gaps” of tax systems that allow multinationals to evade taxes in their home country. On the subject, Mr Sapin said that the principle of a list of non-cooperative countries was accepted by G20 members. It should be prepared by July 2017, according to the final communiqué of the G20.
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