On April 7, the second debate between the finance ministers and central bank governors. The head of the Italian Mef Franco chaired.
Which financial directives did they emerge from the meeting? The way out of the Covid crisis and the challenges for growth were at the fore.
The warning from G20 it is explicit: there is still too much uncertainty, the recovery is progressing unevenly. What to do and what recovery prospects does theItaly?
G20: Maintaining stimuli is crucial
Too much uncertainty still and uneven recovery trends in the world require the utmost attention in this phase of relaunch from global crisis: this is the warning that emerged at the G20 meeting on 7 April.
Although there have been signs of improvement in the world economy, thanks to the readiness of governments in support policies and the launch of vaccinations, the exit from the crisis is fragile.
Inequality growing between countries and lack of liquidity, in addition to the deep wounds on employment and business activities, are worrying and must be addressed.
The Minister Franco, called to chair the debate, concluded that: “The G20 has renewed its commitment to avoid any premature withdrawal of support measures”
The group also asked the IMF to “Make a proposal for the allocation of new special drawing rights for 650 billion dollars, in order to satisfy the need for additional reserves. “
The suspension of the debt service will also be extended to December 2021.
It should be emphasized that the G20 also committed itself to cooperating and defining a unitary model of global taxation.
Italy: recovery from the second quarter
Minister Franco had space to give some indications on our country.
After a poor first quarter, growth is expected in the second, third and fourth quarters of the year. These are the clarifications:
“In the coming weeks we will complete the Def with new objectives of public finance, in doing so we will ask Parliament for a new budget gap which will be used for a new decree aimed at giving further support to the economy and citizens ”
The estimates will be revised, said Visco, governor of the Bank of Italy. And this will happen for at least two reasons:
“The second half of last year went slightly better than feared, and indeed support measures played a role. At the same time we have seen a very virulent revival of contagion and the victims .. ”
Full confidence in the banks’ ability to cope with impaired loans.
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