Brussels, 17/11/2014 (Agence Europe) - The leaders of the 20 largest economies on the planet have adopted an action plan aiming to increase growth by 2% between now and 2018 compared to its current level.
Each of the G20 countries has put together a growth strategy which lists a series of measures adapted to each country's specific circumstances and calling for flexible budgetary policies and the stimulation of both public and private investment, competition and trade. “Recovery remains modest in Japan and the eurozone and inflation is too low”, the G20 action plan notes, whilst praising the positive impact on financial stability of the coming into being of banking union and the results of the recent health check of the European banking sector (EUROPE 11185).
According to the G20, the full implementation of the national growth strategies would add $2,000 billion to the global economy and create millions of jobs. A quarter of this extra growth would come from the positive contagion effect born of the simultaneous application of the strategies, which will also help to boost GDP in non-G20 countries by more than 0.5%.
In order to get investment moving again, the G20 has decided to set in place a global platform, to be based in Sydney, to oversee major infrastructure projects. With a mandate of four years and to operate on a voluntary basis, this 'hub' will promote the exchange of information, networking and the training of the players concerned. Its operating costs have been put at $10-15 million a year. This initiative has, amongst other things, highlighted the ability of the securitised financial products market to help to finance business, particularly SMEs.
The G20 has also pledged to act to increase women's participation on the employment market by 25% between now and 2025, an initiative which will concern 100 million women.
Financial regulation. Welcoming the progress already made to improve the solidity of the banks ('Basel III' agreement) and the transparency of the derivatives markets, the G20 has called for the completion of the projects on the table and for all concerned to remain alert to emerging risks, particularly in the parallel banking sector. The presentation of a standard for systemic banks to build up specific buffers of own funds to be used in the event of banking resolution (EUROPE 11196) was also welcomed. Lastly, the G20 welcomed progress made in the restructuring of sovereign debt (EUROPE 11145). (MB)