G20 between Brexit, terrorism and uncertain recovery. Dragons “downward risks” – The Messenger

 G20 between Brexit, terrorism and uncertain recovery. Draghi: “Risks bottom ‘

The economic recovery remains” modest and uncertain. ” And he faced with many uncertainties and downside risks. Among these are the “geopolitical conflicts, terrorism, the flow of refugees and the shock of Brexit potential ‘. The G20, against this background, is committed to use “all available tools to boost confidence and growth”, acting at the same time on the fiscal front. The recovery is proceeding at a moderate rate – says Mario Draghi, the ECB president – also in Euros, with inflation expected to fall slightly in negative territory before boarding.

Draghi warns of the existence of risks to downward sull’outlook and reiterates: the ECB is ready to do all that is necessary for the stability of prices. And calls to action on banks. The stability of the financial system, highlights Dragons, “it has improved” but profitability “remains low”. Also weighing are “in some jurisdictions’ non-performing loans, non-performing loans,” determined action is needed. The cooperation of the major stakeholders, including governments, banks, authorities and investors, it is necessary to make progress. ” Within the euro it remains to dissolve Greece node. “We hope a short Agreement ‘said Poul Thomsen, head of the European Department of the IMF, providing a return of IMF mission to Athens next week. “We need tough choices” and “realistic parameters” Thomsen adds, according to which a restructuring of Greece’s debt is also possible without a haircut. For the G20 the global economy risks are, however, other. The Brexit is one of them: the outcome of the referendum of June 23 the big worries., As well as the IMF which, during the spring meeting, has repeatedly stated his fears.

He It did in the World Economic Outlook. He did it in the Global Financial Stability Reform. And he did it again with Christine Lagarde. A worry is also the scandal of Panama Papers, believed by some, however, positive for pushing able to give to the reforms and transparency. The G20 in the final statement did not explicitly mention, but threaten ‘defensive measures’ or sanctions against anyone who does not adhere to the standards of transparency and information sharing. Monetary policy – adds the G20 – can not bring itself to a balanced growth. “Our strategies aim to sustain growth and continue to use the budgetary flexibility to strengthen growth, employment and confidence.” Reaffirming its no to protectionism and competitive devaluations, the G20 agrees to reduce global imbalances and push the agenda for investment.

 04/15/2016 20:35:37

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