Group of Twenty hopes to ward off the outbreak of "economic war"

[yota691]

Group of Twenty hopes to ward off the outbreak of "economic war"

Moscow: expected to draw big powers in the Group of Twenty on Saturday in Moscow a message about currency is supposed to be about a threat of "economic war", and also trying to adapt fiscal austerity with the advancement of global still lagging due to the downturn in the euro zone. declared British finance minister George Osborne On the second day of the meeting of finance ministers and central bank governors in states twentieth rich and emerging in Moscow, said that "the world must not commit an error (...) the use of currencies as a tool economic war." and until late, was a war of exchange rates set Westerners, especially in the face of China, which is suspected of keeping the exchange rate of the national currency, the yuan, without actual value artificially to push exports.

But the U.S. central bank then later the Japanese central bank accused also that they Ivertan in issuing securities to support the economy of their countries affects the lower U.S. dollar exchange rate and the yen reflected negatively on the trading partners of the United States and Japan. Denouncing emerging countries for a long time in such practices, but Europe that show some of its at the forefront France, concern the strength of the euro exchange rate, which hinders competitiveness, joined this group after switching Japanese. and in order to avoid the outbreak of "currency war" because of the succession to reduce competitive exchange rates, confirmed the rich countries in the Group of Seven Tuesday in a statement it left to the market to determine the exchange rates. George Osborne said "I think the Group of Twenty will repeat it." He expressed his conviction that the Moscow Declaration would have a "positive impact", along the lines of what his French counterpart Pierre Moscovece who considered that this message will allow "a gradual re-balancing" Equal Exchange Rates.

Indeed, the Group of Twenty words will not be the same words of the Group of Seven, also said negotiators told AFP. He said one of these negotiators that "the group also includes twenty states clearly dependent policy guidance in the field of currency exchange," such as China, and therefore can not go any further than rich countries. Another negotiator said, "but would be the same mentality." Have tried the International Monetary Fund and the European Central Bank or the Organization for Economic Cooperation and Development also in recent days, reducing fears of a "currency war."

While supposedly set twenty to coordinate policies for the benefit of the growth of "a strong, durable and balanced", is regarded as a retreat about strategies and a few national cooperation, could hamper rebound globally uneven. Indeed, the growth has difficulty in moving forward, and so, Europe has become once again under the microscope: Faalankmac in the euro area is more dangerous than had been expected last year. acknowledged Pierre Moscovece "It is true that concern expressed by many." After the International Monetary Fund, which called for easing fiscal austerity in order not to offend more to the economy, and after The European Commission, which is now ready to think about deadlines in order to reduce budget deficits, the talks appear differences between the two countries on the effects of austerity.

He acknowledged the French minister that this "debate" about "the pace of financial solidarity" and about "balance in finding strategies that encourage growth" continues. And Russia, which chairs the Group of Twenty this year, hopes to reduce the size of the goals identified in 2010 in Toronto when committed rich countries in the group twenty to reduce their budget deficit to half by 2013., but some countries, including Germany, refuses to go away in softening the austerity measures.

According to a source close to the negotiations, the final statement in Moscow will not refer to specific targets figures, but will stress the need to identify strategies credible medium-term and that "cross-adapt to the economic situation and with margins for fiscal maneuver each country." In addition, the statement calls clearly states that have surpluses, such as China and Germany, to maintain its activity. They security were expressed in the past, but did not receive the desired success yet, according to many of the delegates.

Group of Twenty will not set new targets on deficit reduction

Confirmed rich countries and emerging Group of Twenty on Saturday in Moscow again the need to reduce budget deficits, but without identifying new targets numbered as it has been at the top of Toronto in 2010 and which have not yet been realized, as announced, chief economist at the Organization of Economic Cooperation and Development.

And Pier Carlo Padoan said, "was reaffirmed that the promotion budgets matter on the relationship to the extent of the Mediterranean." On the other hand, it "has not been set any target in terms of quantum," he said the official of the Organization for Economic Cooperation and Development.

During the Toronto summit in June 2010, rich countries committed members of the Group of Twenty applying financial plans to reduce budget deficits by at least half by 2013 and stabilize or reduce public debt levels by 2016.

The Russian presidency of the Group twentieth expressed willingness to re-examine these agreements to adopt targets "realistic" new. The signing of the agreements Toronto "before resuming the collapse of the economy," he said Pier Carlo Padoan.

"The scenario is disappointing, and the pace of strengthening financial situation to take this matter into consideration," stressing that it is not concerned with the "180-degree shift" carried out by the Group of Twenty. He stressed that "what is taken into account not pace or quantity, by, but the components reinforce the status and the way by utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+elaph%2Feconomics+%28Economics+%7C+%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%29"]which."