World financial leaders (G20) on Friday agreed to maintain expansionist policies to help the world economy survive the effects of the Kovid-19 epidemic and pledged to adopt a more multilateral approach to twin coronoviruses and economic crises .
The Italian president of the G20 group said at a press conference that in a meeting the finance chiefs still promised to work more closely to accelerate the fragile and uneven recovery.
Following a video conference of finance ministers and central bankers at the G20, Danielle Franco stated, “We agree that any premature withdrawal of fiscal and monetary support should be avoided.”
The meeting comes at a time when the United States is preparing for a 1.9 trillion tax package and the European Union has already injected more than 3 trillion euros to run its economies during the lockdown due to Kovid-19.
But despite high prices, problems such as worldwide vaccine delivery and the emergence of new variants of coronaviruses mean that the future of recovery remains uncertain.
The Italian president said in a statement, the G20 is “committed to increasing international coordination to address today’s global challenges, adopting a strong multilateral approach and focusing on a set of core priorities.”
It was the first meeting after Joe Biden – who promised to rebuild American cooperation in international bodies – was elected president of the United States, and seems to have the difficult issues of taxing multinationals, especially United States veterans. But significant progress has been made. State. Internet, such as Google, Amazon and Facebook.
US Treasury Secretary Janet Yellen told the G20 that Washington rejected the Trump administration’s proposal to allow some companies not to comply with the new global digital tax regulations, allowing the deal to be settled by the summer of the Northern Hemisphere.
“Giant Step Ahead”
The move was acknowledged as a success by Germany’s Finance Minister Olaf Scholz and his French colleague, Bruno Le Myre.
Scholz said Yellen told G20 officials that Washington also plans to improve America’s minimum tax rules, according to the OECD’s proposal for a global effective minimum tax.
“It’s a huge step forward,” Scholz said.
The new US stance should pave the way for a comprehensive agreement on the taxation of multinationals at the G20 meeting in Venice in early July, said Franco of Italy.
The G20 also discussed how to help the world’s poorest countries, whose economies are struggling with economic crisis.
On that front, the International Monetary Fund had widespread support in expanding the capital to help it provide more debt, but no concrete figures have been proposed.
To have more firepower, the fund last year proposed increasing the IMF’s own budget to $ 500 billion, called Special Drawing Rights (SDRs), but the idea was interrupted by then-US President Donald Trump went.
“There was no discussion on special editions of special drawing rights,” Franco said, adding that the issue would be discussed more based on a proposal prepared by the IMF for April.
Although the IMF sees the US economy returning to pre-epidemic levels later this year, it may take Europe by the middle of 2022 to reach this point.
Recovery is also fragile elsewhere. Industrial activity in China grew at the slowest pace in five months in January and Japan’s growth rate slowed from the previous quarter in the fourth quarter.
Some countries hoped that the G20 could extend the suspension of debt service costs beyond June to the poorest countries, but no decision has been made.
The matter will be discussed in the next meeting, Franco said.