Economy
Friday, 26 February 2016
At the start of the G20 summit in Shanghai German Finance is the focus. Schäuble calls on other countries to on what he himself practiced in Germany.
German Finance Minister Wolfgang Schäuble has the major industrialized countries and emerging economies prompted to provide with structural reforms and not with new stimulus packages to boost growth in the world. “Talking about further stimulus measures, only deflected from the real tasks from that face us,” he said shortly before a G20 finance ministers meeting in Shanghai. The model of debt-financed spending programs have done himself. The monetary and fiscal policies had arrived at its borders.
IMF chief Christine Lagarde and the G20 host China agreed in the reputation by accelerating reforms so as permanently to boost growth. Lagarde considers it possible that the world economic growth prospects still darken. Schäuble, Lagarde and other G20 leaders expressed their conferences ahead of the finance ministers of the 20 leading industrial and emerging countries (G20). In the group of countries has long argued about the right way to come to more growth. The US and the IMF are traditionally considered the main proponent of new government spending programs, especially in countries with financial margins like Germany.
Schäuble held and replies over again without solid budgets and structural reforms there can be no lasting give growth. He took this position in Shanghai for about accentuated than before. The German Minister particularly welcomed that China has made as a presidential Nation G20 the subject structural reforms to its emphases. By this’ll Germany, the 2017 presidential accepts, build.
“Enough stimulus in the system”
From debt-G20 spending programs, as some called for the case that the current growth risks would Estate, Germany do not believe. “There are already plenty of stimulus in the system”. The Minister drew attention to the extremely cyclical supportive monetary policy with its low interest rates, which will bring more and more risks, threatening to be counterproductive and the banks do hard life. One of the biggest problems was already high debt in many countries, in both the public and private sectors. The presented together with a lack of structural reforms, the main obstacle for sustained growth. Germany have shown how to get on with a sound budgetary policy and reforms.
More aboutChina’s Finance Minister Lou Jiwei made in view of the G20 clearly: “The process of reform in the G20 has lagged behind our expectations.” Therefore, it was important to do more to make changes with the goal of more growth. It applies, for example, to facilitate market access and to create labor markets more flexible. IMF chief Christine Lagarde pointed out that their institution has just withdrawn its growth estimates for the world. And she warned: “This is not necessarily the end of the story.”
Schäuble agreed in these warnings and described the current economic uncertainty as a possible harbinger of a coming crisis. Lagarde stressed, so it makes more sense than ever to talk about measures for more growth, and here it go primarily to structural reforms. Here one should, however, start on both the demand and supply sides, in their opinion. This leaves open the possibility of further spending programs.
Source: n-tv.de
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