Brussels, 16/06/2009 (Agence Europe) - A crisis exit strategy has been envisaged at a G8 level but caution is definitely the watchword. At the end of their meeting on Saturday 13 June in Lecce (Italy), G8 finance ministers illustrated a number of signs of stabilisation in their economies but continued to highlight the importance of continued recovery efforts.
The final press release indicated: “There are signs of stabilisation in our economies, including a recovery of stock markets, a decline in interest rate spreads, improved business and consumer confidence, but the situation remains uncertain and significant risks remain to economic and financial stability”. The rise in unemployment remains a major concern of the G8 (Germany, Canada, US, France, Italy, Japan, United Kingdom and Russia), who also reaffirmed their “commitment to address liquidity and capital needs of banks, as necessary, and to take all necessary actions to ensure the soundness of systemically important institutions”. Although discussions on crisis exit strategies may have begun, the tone of the press release remains cautious and reflects the different analyses: “We discussed the need to prepare appropriate strategies for unwinding the extraordinary policy measures taken to respond to the crisis once the recovery is assured. These 'exit strategies' which may vary from country to country are essential to promote a sustainable recovery over the long-term”. No indication was given as to when the recovery would actually start but last April the G7 considered that economic activity was expected to recover later in the year. Nothing was said either with regard to the current debate on the stress tests in the banking sector.
G8 finance ministers also adopted an Italian initiative (“Lecce Framework”) to set up a series of principles and non-binding standards for improving the integrity and transparency in international business and finance. The Lecce Framework aims to bring together in the same working framework different institutions such as the IMF, World Bank, OECD, FSB and FATF, as well as governments to work on corporate governance, market propriety, market integrity, financial regulation and supervision, tax cooperation and policy and macro-economic data transparency. The text indicates that “to ensure effectiveness, we will make every effort to pursue maximum country participation and swift and resolute implementation”. This approach will require more far-reaching discussions, particularly during the G8 summit in L'Aquila in July and probably at the G20 in Pittsburgh next September. (A.B./transl.rh)