Work launched at European level ahead of the next G20 Summit
C. Mc Creevy - J-C. Trichet - C. Lagarde - J. Almunia
© Sircom
- On: 18.12.2008
- In: Paris
Following the G20 meeting, the ECOFIN informal identified European guidelines regarding non-cooperative jurisdictions, the FMI’s resources, and the setting up of an early warning system to prevent financial crises.
Meeting in Paris, at the invitation of Christine Lagarde, the EU finance ministers, the European Commission and the ECB, started work on the implementation of policylines adopted at the G20 Summit. The European Union actually played a driving role in Washington and the ministers agreed that the EU should remain a force of proposal, by now preparing the forthcoming international meetings.
The Presidency had also invited Dominique Strauss-Kahn, IMF Managing Director, and Mario Draghi, President of the Financial Stability Forum (FSF), to launch reflection on three key themes: non-cooperative jurisdictions, the FMI’s resources, and the setting up of an early warning system for financial risks at an international level.
Following their debates, the ministers decided to take new measures to bring an end to the damaging action of non-cooperative jurisdictions, a source of instability within the financial system. They requested the FSF to identify the jurisdictions believed to be acting non-cooperatively in the financial sector, an analysis which should lead to specific proposals for action to tackle the problem. The European Commission will also present an action plan at the beginning of 2009 in this area.
In view of the IMF’s increasing interventions recently to support countries in difficulty, amounting to a record $41bn in November 2008, the ministers believed it was indispensable that the Fund have adequate resources to effectively carry out its mission. They committed to reviewing all the options that would enable the IMF to continue to play a stabilising role in the financial system.
Lastly, confronted with the challenges of identifying the risks and vulnerabilities of the global financial system highlighted by the current crisis, the ministers wished to reinforce the tools enabling the detection of macroeconomic and financial risks within the global financial system. They mandated their experts to identify the means to more effectively evaluate the full extent of risks and strengthen collaboration between the IMF and the FSF.
Ministers also exchanged views on the economic situation and the national recovery plans implemented in accordance with the conclusions of the Presidency of the European Council of 11 and 12 December. Mobilisation of all available instruments should be made possible in order to avoid massive activity or job losses. Commissioner Almunia considered that at this the measures taken would have a 0.85% positive impact on growth, besides having the effect of automatic stabilizers of the economy.
Informal meeting of the economic and financial affairs ministers in Paris (Announcement) / See Photos
- Updated: 19.12.2008
