on the public investment spending to support growth, if budgets allow. It is one of the conclusions of the G20, as explained Economy Minister Pier Carlo Padoan. The G20 discussed the policies needed to support demand and was open to the idea that “where there is fiscal space that should be used for measures conducive to growth, such as for capital expenditures that support both demand and the growth of medium term, “said Padoan after the Shanghai summit. “The ability to use the fiscal instrument is dependent on the fiscal space, ie from the budget margin that depends from country to country. In Europe and Italy need in my opinion is on the side of stimulus support demand and supply, “he added.
But the final communique of the G20 is very articulate: indicates that there are “growing concerns about the risk of a further downward revision” in global growth prospects. It also considered one of the major risks to the global economy the assumption that it will be the exit of Britain from the EU (Brexit) and the refugee crisis in the Mediterranean.
“Revision of pessimism”
“We are convinced that in this context we will consolidate growth, which continues to be sustained and sustainable,” continued the Minister of Economy, explaining that emerges from a meeting ‘ message of optimism and there is assessment shared availability to act further. ” The Bank of Italy Governor Ignazio Visco said that “at the G20 there was a review of the pessimism that was the beginning.” About Brexit, “is considered an important and negative geopolitical shock,” said Padoan. “The issue of migrants has not been the subject of special discussions in the G20,” he added. As to the discussions on the EU and the euro held, the minister stressed that “we are not in 2012, the issue is not whether Europe will collapse or not. Today, Europe is certainly more stable and is not the main risk factor. “
the final statement: concerns about global growth
the conclusions officers of the financial G20 summit expressed in the final communique indicate however concerns about the global economic recovery, which is “uneven and is below our ambitions for a strong, sustainable and balanced growth. There are growing concerns about the risk of a further downward revision “in global growth prospects. “We agree that we all need to do more to achieve our common goals for global growth,” reads the statement. That is why the G20 will use the levers of monetary policy, fiscal and structural reforms to support growth. And the added effort in the final communiqué of the summit of finance ministers and governors is also not to carry out competitive devaluations and in close cooperation on currency policies. The economic data are better than suggest the volatility of growth, and there is no reason to speak of an economic crisis. However they are also needed ‘short-term measures “to support the economy. He said the German Finance Minister Wolfgang Schaeuble at the end of the G20 Shanghai.
Weidmann: doubts on ECB policy, are not the panacea
Just on monetary policy, starting with the quantitative easing from the ECB and future steps that the European central bank president Mario Draghi could take in March, the debate is on. The expansionary monetary policy by central banks such as the ECB is “not a panacea” for the global economy, and it is doubtful that it can solve the structural problems, said the president of the Bundesbank Jens Weidmann. Other than the opinion of the governor of the Bank of Italy, Ignazio Visco, according to which, in the launch of stimulus measures, the ECB ‘we arrived at the terminal, our responsibility is to avoid deflationary tendencies “. In response to the fears – especially the northern European countries – on the impact of monetary easing measures, the Bank of Italy governor highlighted that “for now do not see the risks of possible asset bubbles on particular markets.” However, he concluded, to deal with any fallout today “we have the best tools a few years ago,” since “the system is more resistant.”
February 27, 2016 (edited February 28, 2016 | 10:23)
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