Skyrocketing public debt, investments to support the green transition and a global minimum tax on multinationals. These are the key topics on the agenda of the G20 Finance Ministers and Central bank governors who will meet in Venice on 9-10 July.
On debt relief for low-income countries, the G20 has already taken some measures but doubts remain. How long can debt relief measures last? How to better involve private creditors? Besides, skyrocketing debt is an issue for over 40 middle-income countries around the world. What strategy should G20 countries adopt to escape the fate of new financial crises? How to foster a stronger intervention by the IMF?
The Italian Presidency put the spotlight also on the financial support to the green transition. It remains to be seen how to better engage private investors and the role to be played by development and regional banks also with a view to helping poor and developing countries.
There is also much expectation on the G20’s move on international taxation. Both the G7 and OECD members have struck a deal on the introduction of a global minimum tax. Will the G20 be able to take the final step? When and how to implement the new tax?
On these and other pressing global financial issues, the Think20 (T20) – chaired by ISPI – brings together hundreds of leading think tanks worldwide and serves as the “ideas bank” of the G20. The T20 has collected its policy recommendations in a Statement submitted to the G20 Finance Ministers.
You can read it here:
Post-Pandemic Recovery and Global Financial Stability: Which measures for the G20?
The COVID-19 pandemic has undermined the stability of the international financial architecture while exacerbating existing issues within the global financial system.
“The principle of "profit maximation" alone is no longer sufficient and economic agents will need to maximise climate goals, social outcomes as well as creating financial value-added. I would hope that ministers drive this message by showing their commitment to endorse these wider objectives.”
Maria Demertzis, Deputy Director, Bruegel
“I expect Ministers and Central bank governors to Support FSB implementation of the G20 mandate on “global stablecoins”. Public consultation on regulatory issues are expected to be finished by end of July. A final draft report will be issued by August and the final report and recommendations will be ready for publication by October.”
José Siaba Serrate, Member, CARI; Senior Associate Research Fellow, ISPI
“The World Bank estimates that nearly 124 million people are likely to get pushed into abject poverty. The IMF, on the other hand, has raised concerns about economic stability and social unrest caused by an emerging “Great Divergence” in global growth with 50 percent of the developing world falling further behind on their development curve. Restoring years of progress in global economic development is what should be on the agenda of the G20 Finance and Central Bank Governor’s Meeting.”
Akshay Mathur, Director, ORF Mumbai; Head, Geoeconomics Studies Programme, ORF