Europe again the black sheep at the G20 Finance Ministers and Central Bank Governors

Karel De Gucht, Member of the EC in charge of Trade, met with Michael Froman, US Trade Representative, in Sydney in the margins of the meeting of the Ministers for Trade at the G20 Summit (from left to right), (EC Audiovisual Services, 18/07/2014)

Karel De Gucht, Member of the EC in charge of Trade, met with Michael Froman, US Trade Representative, in Sydney in the margins of the meeting of the Ministers for Trade at the G20 Summit (from left to right), (EC Audiovisual Services, 18/07/2014)

Last weekend the much anticipated G20 Finance Ministers’ and Central Bank Governors’ meeting happened in Cairns, Australia. It was very supportive and positive as far as the implementation of the necessary measures to boost the global economic growth in terms of GDP by an additional 1.8 per cent till 2018. This will be done through investments in infrastructures and in the labor market. However, the negative contribution of Europe and China in terms of growth is an important issue that requires great attention.

G20’s measures to be implemented

Nearly a thousand measures, seven hundreds of which are new, will give a push to the global growth of 1.8 per cent by 2018. These measures will mainly target in the infrastructure and labor areas. In addition, the intention of the G20 to create a framework that will enhance the exchange information in order to eliminate tax evasion was announced by the French Finance minister, Michel Sapin.  It is true though that the target of 2 per cent growth that was set in February by the G20 was not accomplished and extensive measures must be taken.

U.S. economy is shining

The U.S. economy is doing very well in terms of adding more strength to the global economic growth. As Jacob Lew, the US Treasury Secretary stated: “The United States GDP grew by a robust 4.2% annual rate in the second quarter of this year. The unemployment rate is at a six-year low, and the private sector has created 10 million jobs in the last 54 months.” Furthermore, the forecasts are encouraging and will continue to this direction till the end of 2016. According to Jacob Lew’s sayings, it seems that the U.S. has learned their lesson from the global financial crisis and are driving the boat to a more prosperous economic environment.

Europe: “the black sheep”

The European economic growth was once more the topic in the agenda of the G20’s meeting. The downfall of the inflation and the rise of unemployment are the most important issues that require the implementation of short and long-term measures in order to be brought into normal levels as the US Treasury Secretary stretched out during his speech. And by normal he meant targeting inflation at close but below the 2 per cent level and helping unemployment levels fall by creating millions of new jobs. This can be done by increasing demand which will help the economy be more competitive and grow at a high pace.

China: a falling “giant”

The case of China didn’t bring as much attention as it should. The Chinese is one of the biggest economies in the world and it is strange the G20 Finance Ministers didn’t make any extended reference to the current situation of the country which is experiencing slow growth figures. Is it because they are confident that the economy will come back to previous high growth levels or they don’t want to intimidate the global community and cause turbulences in the international markets? Either way, the outcome remains the same since the additional growth GDP percentage will be affected by the Chinese economy.

The future

The G20 meeting has proven that we are in the right path for growth but many things have to be done, with the most important being the implementation of the aforementioned measures, in order to reach that long-term growth target. Thus, November is very crucial because the G20 summit will take place and these proposals will be formalized and put into action. Let’s hope that these measures will help the global economies and especially Europe to grow, create more job opportunities in the labor arena and form a positive environment through less bureaucracy and more credit for people who want to start their own businesses.

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

Stopping antimicrobial resistance would cost just USD 2 per person a year

Charlie’s tragedy energized deeper feelings amongst Europeans; back to basics?

Changing for the change: Medicine in Industry 4.0

The unique role of business in building social good

UN forum spotlights cities, where struggle for sustainability ‘will be won or lost’

Why is Merkel’s Germany so liberal with the refugees? Did the last elections change that?

Apparently the EU Digital Single Market passes necessarily from China’s Digital Silk Road

Further reforms will promote a more inclusive and resilient Indonesian economy

More bank bailouts at taxpayers’ expenses

Paris is building the world’s greenest business district. What can other cities learn from it?

Financial Transaction Tax: More money for future bank bailouts?

FROM THE FIELD: Finding refuge in the ‘beautiful game’

India is a latecomer to AI. Here’s how it plans to catch up

An FTA between EU-US to hurt South Korea

A European Discovers China: 3 First Impressions

Sudzha gas metering station at Russian-Ukrainian border (Copyright: Gazprom, 2015 / Gazprom’s website, Media)

Gazprom starts suspending gas contracts with Ukraine as Brussels fears limited transit to Europe

EU Leaders’ meeting in Sofia: Completing a trusted Digital Single Market for the benefit of all

The banks first to benefit from the new euro trillion ECB plans to print

EU Youth Conference in Riga concludes with recommendations for ministers

Deal on faster exchange of non-EU nationals’ criminal records

Poverty data never tells the whole story

UN expert ‘shocked’ by Egyptian reprisals against human rights defenders she met

Open, inclusive and diverse cities are better for business and economic growth

ILO warns of widespread insecurity in the global labour market

Conflicts and extreme climate change threatens access to food in 39 countries – UN agriculture report

At last a good price for the Greek debt!

New skills agenda for Europe needs real investment

COP21 Breaking News_03 December: Transport Industry Drive for Improved Energy Efficiency and Electro-Mobility to Stem High Growth of Emissions

Amending Guatemala ‘reconciliation law’ would lead to unjust amnesty, warns Bachelet

Climate change and its adverse impacts on health

Ercom, cutting-edge Telco solutions from Europe

European Confederation of Junior Enterprises hosts in Geneva the Junior Enterprise World Conference

African cities will double in population by 2050. Here are 4 ways to make sure they thrive

Consumers suffer three defeats

The Junior Enterprise concept: Business & Education

Trump rejects Europe’s offer for zero car tariffs; he had personally tabled that idea in July

The time is up but the game is still not over for Greece: negotiations continue in anticipation of a new deal

UN chief condemns killing of ‘blue helmets’ in DR Congo, as violence erupts prior to elections

Guatemala Dos Erres massacre conviction welcomed by UN human rights office

Four major resources for new European young entrepreneurs

Capital Markets Union: Making it easier for smaller businesses to get financing through capital markets

Financiers can turn the world into a dirty and dangerous place

Parliament approves €500 million for schooling of refugee children in Turkey

Businesses can lead a revolution in disability inclusion

Stricter rules and tougher sanctions for market manipulation and financial fraud

EU readies for eventual annulment of the Turkish agreement on immigrants-refugees

YouTube stars get creative at UN, to promote tolerance

International World Summit Award calls for outstanding digital applications with impact on society from 178 UN member states

The Future of Balkans: Embracing Education

European Business Summit 2014: The role of youth entrepreneurship education in EU’s Strategy for Competitiveness

UN chief condemns student abductions in north-west Cameroon

Autonomous vehicles could clog city centres: a lesson from Boston

EU responds to terror fallout by eroding borderless Europe and molesting the refugees

Germany and Europe prepare for Trump’s America

In Washington D.C., Guterres signs pact with World Bank, meets US President Trump

A new proposal breaks the stalemate over the Banking Union

‘Favour dialogue’ over violence, UN chief urges all parties following clashes in Mali’s capital

India’s economy is growing fast, but its poorest areas lag behind. Here’s why this could be about to change

These countries have the highest minimum wages

EU summit: Are the London Tories planning an exit from the EU?

UN rights chief calls for international inquiry into Kashmir violations

More Stings?