The G20 commits to maintain aid for covid while there is no stability

The finance ministers and central bank governors of the G20 countries pledged this Wednesday in Washington not to withdraw "prematurely" aid measures in the face of the pandemic while economic stability is not guaranteed.

In a joint statement made public after their meeting this afternoon in the US capital, where the assembly of the International Monetary Fund (IMF) and the World Bank is held this week, the G20 economic ministers also stressed that they will continue to monitor the evolution of prices.

"We will continue to sustain the recovery and avoid any premature withdrawal of aid", they indicated in the statement, which also speaks of the commitment of "preserve financial stability and long-term fiscal sustainability" to safeguard these economies from the risks of falling and "negative side effects".

Thus, the central banks also pledged to continue to closely monitor the evolution of inflation and to act "when necessary" to fulfill its mandates, including price stability.

In the communiqué signed after the meeting held this afternoon, the ministers of the world’s main economies joined the agreement reached on October 8 at the Organization for Economic Cooperation and Development (OECD) to establish a minimum corporate tax of the 15% and distribute part of the benefits in the countries where they are generated.

They stressed that said agreement establishes an international tax system "more stable and fair" and they agreed on the need to put in place as soon as possible the rules and multilateral instruments that allow this commitment to be effective as of 2023, as was also underlined at the OECD meeting.

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They also noted their "determination" to work so that the pandemic is "under control" all over the world "as soon as possible" and they recalled the commitment of the G20 health officials to help developing economies and countries with lower incomes to have access to vaccines and treatments against covid-19.

The US Secretary of the Treasury, Janet Yellen, stressed the adhesion of this country to what was agreed by the G20 ministers and said in a statement that the Government of Joe Biden will work "constructively" with Congress to try to include the "revolutionaries" international fiscal commitments in its social spending package.

For his part, the EU Commissioner for the Economy, Paolo Gentiloni, stressed in another note that, while emerging from the "shadow" of the pandemic, the G20 countries have a "unique opportunity" to rebuild their economies on "new foundations" so that there is not only a recovery but "a new era of sustained and sustainable growth".


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