Brussels, 05/10/2001 (Agence Europe) - For the first time since the tragic events of 11 September in the United States, the Finance Ministers and central bank governors of the seven most developed countries (G7) will meet in Washington on Saturday to discuss international economic coordination and the fight against the funding of terrorism.
The United States are considering using state aid and tax cuts (possibly to a level of EUR 128 billion) have to ask the six other countries to rapidly adopt hefty measures to sustain growth and head off world recession. European countries are find it difficult to launch growth stimulation measures given the conditions set in the Stability and Growth Pact. The EU wants to act to relaunch its economy, but it does not have the fiscal room for manoeuvre of the United States, explained the French Finance Minster, Laurent Fabius, admitting that it would be neither responsible nor useful to amend the Stability and Growth Pact. The G7 might appeal for a stabilisation of the currency markets (targeting the yen) and for the governors of the central banks to continue to discuss monetary policy. In terms of combating secret funding routes, the G7 will examine ways of better co-ordinating measures taken both nationally and internationally. Some countries, like France, are expected to call for the Financial Action Task Force on Money Laundering's remit to be extended to terrorism. The FATF announced that it would be holding an emergency meeting on 29/30 October in Washington to take measures to combat the financing of terrorism.