Brussels, 20/04/2015 (Agence Europe) - The finance ministers and central bankers of the countries of the G20 welcome flexible monetary policies to support recovery, whilst flagging up increasing financial volatility in relation to fluctuations in exchange rates.
“In many advanced economies, accommodative monetary policies are needed to anchor inflation expectations and support recovery. In an environment of diverging monetary policy settings and rising financial market volatility, policy settings should be carefully calibrated and clearly communicated to minimise negative spillovers”, said the 'G20 Finances', which met at the end of last week on the sidelines of the spring meetings of the World Bank and the IMF.
In the United States, the dollar has gained ground over the euro, due to the tightened monetary policy announced by the FED, whilst in Europe, the launch of the ECB's 'quantitative easing' programme in March has contributed towards a depreciation of the euro.
In order to support “moderate” global growth, due to uncertainties in the emerging economies (China, India), but also a stronger recovery than anticipated in Japan and Europe, the ministers and central bankers reiterate their commitment to “flexible” budgetary policies, stimulating investment and pursuing structural reforms in the framework of national growth strategies. An initial report on the progress made by each member country in applying its own strategy will be presented to the G20 Summit to be held in Antalya in November (see EUROPE 11251).
On the financial regulations agenda, the 'G20 Finances' stressed its determination to finalise the future total loss-absorbing capacity (TLAC) instrument ahead of the Antalya summit. The world's 30 largest banks will have to adopt this instrument from 2019, “after the completion of rigourous and comprehensive impact assessments”. It supports the work being carried out internationally to finalise “criteria to identify simple, transparent and comparable securitisation”. Lastly, on taxation issues, it states that it is “on track” to finalise the work aiming to curb the tax optimisation practices of multinational companies ('BEPS' action plan). (Mathieu Bion)