Brussels, 17/02/2014 (Agence Europe) - The Australian presidency of the G20 in 2014 will focus on the resilience of so-called too-big-to-fails, minimising risks in parallel banking and derivatives market security. Australia will receive full backing from the EU in its work.
In a common position to be endorsed by the Ecofin Council on Tuesday and defended by European G20 nations at the G20 Finance Summit in Sydney on 21-23 February (see Twitter @AgencEurope), the EU says it agrees with the G20 Presidency's four-pronged focus for the Brisbane Summit - boosting banks' resilience, putting an end to the too-big-to-fails, dealing with the risks of shadow banking, and making the derivatives markets safer. The EU mentions other big issues like winding up banks and reducing reliance on credit rating agencies.
Europeans will be travelling to Australia to brief the G20 on improvements in the economic situation in Europe, where the latest figures show growth in the eurozone and EU28 of 0.3% and 0.4% of GDP respectively. Important risks to the economy remain and the recovery is weak and uneven, they explain. Europe takes note of recent developments on the financial markets for the emerging economies, repeating comments from the St Petersburg summit statement that healthy macroeconomic policies, structural reforms and solid prudential frameworks enable the problems caused by volatile financial markets to be dealt with (see EUROPE 10916).
On the budget front, Europe backs the Australian Presidency's decision to help member states draw up ambitious and detailed strategies for growth that include investment boosting measures, jobs, trade and competition. They say it is important for the G20 in February to reaffirm the St Petersburg Action Plan and for the growth stimulus aid not to be threatened by the need to ensure sustainable public finances. (MB/transl.fl)