The G20 should lead a drive to improve worldwide tax governance, Chinese Finance Minister Lou Jiwei at a meeting of G20 finance ministers and central bank governors in southwest China’s Chengdu City on Saturday.
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“Strengthening the rule of law is fundamental for sustainable development and we support the legitimate government of Turkey in its endeavours to enhance economic stability and prosperity”, the additional paragraph of the G20 was to say.
“There will be a lot of attention to this meeting as we gather for the first time since the Brexit vote shook markets”, said one Asian finance official.
Western countries backed Turkey’s government during last week’s failed putsch, but are increasingly anxious about Ankara’s subsequent crackdown against thousands of members of the security forces, judiciary, civil service and academia. The spectre of protectionism, highlighted by U.S. Republican presidential candidate Donald Trump’s “America First” rhetoric and talk of reworking or quitting trade agreements, will also hang over the meeting.
Lou Jiwei, China’s Minister of Finance speaks at the High-level Tax Symposium held in Chengdu ahead of the G20 Finance Ministers and Central Bank Governors Meeting, southwest China’s Sichuan province, July 23, 2016.
CHENGDU, China, July 23 The G20 economies will reiterate their determination to use all policy tools, individually and collectively, to achieve their goal of strong, sustainable and balanced growth, according to a draft of the G20 communique seen by Reuters on Saturday. “The results of the United Kingdom referendum have increased uncertainty and may weigh on the global economic outlook”, a terms of reference document agreed by European Union finance ministers for the G20 meeting said. The European position appears aimed at assuaging concerns expressed by the International Monetary Fund in its updated World Economic Outlook on July 19, when the Fund again cut its global economic growth forecast citing uncertainty caused by Brexit.
On Friday, Hammond said the United Kingdom could reset fiscal policy if necessary, his strongest comments to date on how policy may change after Britain’s historic decision to leave the European Union. “We affirm our assessment that the United Kingdom economy and financial sector remain resilient”, said the document, obtained by Reuters.
European officials were keen for more information. “The sooner the better so this generates a new equilibrium”, Italian Economy Minister Pier Carlo Padoan told Reuters.
Earlier French Finance Minister Michel Sapin told AFP that some countries, “not only China” were “reluctant” on questions of cooperation on tax evasion.
Lew, in a meeting with Japanese Finance Minister Taro Aso, reiterated the need for G20 members to refrain from competitive devaluations, as had been agreed at a G20 meeting in February.
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Regarded as a safe haven at times of market turmoil, the yen strengthened to around 100 to the dollar after the Brexit vote, much to the chagrin of Japanese officials, although it has since eased back to around 106 per dollar.
