“The risks to the global economy have grown in recent months.” The warning comes from Australia who is signed by all the big economy for the G20 meeting in Cairns and will be the heart of the final document expected tomorrow. Not surprisingly, the climate that reigns in Cains at the end of the first day of work is to a substantial convergence of positions of major economies to the need to focus on investment to boost growth. But he could not miss the latest chapter in the controversy between Germany and the ECB. But yet another reprimand of the United States to Europe, when it comes to growth and stimulus policies.
After the stresses come in recent weeks from Frankfurt on taxes and investments by the ECB, it is now In fact, the answer came in the tone of the German Minister of Finance Wolfgang Schaeuble. The finger is pointed at the expansionary fiscal and monetary policies that “threaten to create a speculative bubble in the financial markets and real estate,” but above all that “reduce the pressure for structural reforms.”
In short, other than political that may endanger the long-term stability, suggests the German Minister. They serve “structural reforms and fiscal consolidation,” more than ever necessary to create the basis for sustainable growth.
A seasoned position from the position of number one on the German central bank (Bundesbank), Jens Weidmann, also a member of the ECB, convinced that “monetary policy should not be burdened with too many expectations and should not be asked to do tricks you can do . ” One way to emphasize the limits of Frankfurt on the growth front but also to put pressure on the actions of Mario Draghi, Weidmann seen that according to the policy of the ECB “should not be expansionary for longer than the time necessary to ensure price stability . “
In the background the crossfire between Germany and the ECB, overlooking the barbs from the United States.
You need to make “more effort” for global growth has in fact said the U.S. Treasury Secretary, Jack Lew. But not all do your homework as the United States, seems to emphasize the secretary of Use. “Overall, the world economy continues to have performances of” economic “insufficient. This is especially true for the euro area and Japan. ” In short, full promotion only for the United States that “continue to be an important source for the world economy.”
Just imagine what will think the Secretary Lew Italy since today was the same minister of ‘ economy, Pier Carlo Padoan, to admit the state of the art in terms of growth. “Europe is growing less than other areas of the world, Italy less than Europe. Reforms we need now, “he wrote on his twitter profile, the Minister of the Treasury, then added:” As the Ecofin of Milan, the G20 also broad agreement on the resumption of investments to support growth, “reads yet.
But Italy is making his moves in front of this scenario. Italy “is making a lot of progress in the agenda of structural reforms,” he assured himself Padoan members of the G20, explaining in an interview with Bloomberg that these words “were received in a very positive way.” Then again: “The Italian economy is still in recession, technically speaking, because of negative growth, but this is ending and we expect positive growth starting next year.”
Today, in the final document of the work of Cairns you will be in black and white too: the outlook has worsened outlook for the economy and weak global burden even the pace of growth uneven across countries.
For the remainder will be the topics of fiscal policy and, not surprisingly, foreign exchange, other central nodes of the official document. The final text of tomorrow, said the South Korean Finance Minister Choi Kyung Hwan, will contain a reference to the need for ‘coordination’ policies on foreign exchange, after which the divergent monetary policies of the ECB, the Fed and the Bank of Japan is likely to increase the ‘rate instability and hence financial markets.
Roberta Amoruso
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