hardly encouraging analysis that emerges from the final document of the Washington G20. Cautious even ECB President, Draghi, who warns: the stability of the financial system “has improved ” but ” profitability remains low ”
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the final document of the G20, in Washington, argues that the economic recovery remains ” modest and uncertain ”, struggling with many uncertainties and downside risks. Several factors that negatively affect the economic recovery, including the ” geopolitical conflicts, terrorism, the flow of refugees and the shock of a potential Brexit ”. the G20, against this background, is committed to use ” all tools available to build confidence and ” growth, by acting at the same time on the fiscal front.
the recovery is proceeding at a moderate rate – says Mario Draghi, ECB president – also in Euros, with inflation which is expected to fall slightly in negative territory before boarding. Draghi warns of the existence of downside risks sull’outlook and reiterates: the ECB is ready to do all that is necessary for the stability of prices. The President of the European Central Bank urges to act on credit institutions. 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 remains to untie the knot Greece. ” We hope a short ” agreement says Poul Thomsen, head of the European Department of the IMF, providing a return of the Fund’s mission to Athens next week. ” We need tough choices ” and ” realistic parameters ” adds Thomsen, according to which a restructuring of Greece’s debt is also possible without a haircut.
For the G20 the global economy risks but 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 has done in the World Economic Outlook, then in the Global Financial Stability Reform and did it again with Christine Lagarde. A worry is also the scandal of Panama Papers, however, it believed by some positive for pushing able to give to the reforms and transparency. The G20 in the final statement did not specifically talk about, but you threaten ” defensive measures ”, namely sanctions, against anyone who does not adhere to the standards of transparency and sharing of information.
Monetary policy – adds 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 is committed ultimately to reduce global imbalances and push the agenda for investment.
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