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G20 adopt list of principles to strengthen economic resilience

Reuters  |  BADEN-BADEN, Germany 

By Michael Nienaber

BADEN-BADEN, (Reuters) - The world's financial leaders adopted a list of principles on Saturday to boost the of their economies against future shocks, including the advice to strengthen policy frameworks to reap the benefits of open markets.

"The risks for the global economy continue to persist of course, some even say they have rather increased," German Finance Minister Wolfgang Schaeuble said on Saturday during a conference at the end of the meeting in Baden-Baden.

"This is why it's all the more important that we are well prepared," Schaeuble said, adding that strengthening the economic against future shocks was one of the priorities of the German presidency.

Schaeuble said the adopted list of principles included policy recommendations for example on labour market regulation, but also for international trade and the "importance of open markets".

The adopted document, of which obtained a copy, is entitled "Note on Principles in Economies". The list is organised around five broad themes - real sector, public finance, private finance, monetary policy and external sector.

The list includes the advice to "strengthen macroeconomic foundations and policy frameworks to reap the benefits of openness to trade and international capital flows".

It also calls on governments to "ensure that the benefits from trade are widely shared throughout the entire economy".

In the section on public finances, it says governments should ensure that public debt is on a sustainable path taking into account "longer term structural fiscal pressures".

In their main communique, the countries dropped on a pledge to keep an open and inclusive global trade system after being unable to find a suitable compromise with an increasingly protectionist United States.

In an apparent reference to U.S. proposals to introduce a border tax to favour exports over imports, the separate document on warns against negative spillover effects from individual policy actions.

"While the effects of individual policy actions are amplified through positive cross-border spillovers, any possible negative cross-border spillovers arising from individual policy actions should also be considered," it says.

The International Monetary Fund chief economist Maurice Obstfeld warned on Monday that U.S. proposals to overhaul the U.S. tax code by favouring exports over imports could have spillover effects to other economies such as Saudi Arabia as the measure was likely to strengthen the dollar.

(Reporting by Michael Nienaber,; Editing by Stephen Powell)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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G20 adopt list of principles to strengthen economic resilience

BADEN-BADEN, Germany (Reuters) - The world's financial leaders adopted a list of principles on Saturday to boost the resilience of their economies against future shocks, including the advice to strengthen policy frameworks to reap the benefits of open markets.

By Michael Nienaber

BADEN-BADEN, (Reuters) - The world's financial leaders adopted a list of principles on Saturday to boost the of their economies against future shocks, including the advice to strengthen policy frameworks to reap the benefits of open markets.

"The risks for the global economy continue to persist of course, some even say they have rather increased," German Finance Minister Wolfgang Schaeuble said on Saturday during a conference at the end of the meeting in Baden-Baden.

"This is why it's all the more important that we are well prepared," Schaeuble said, adding that strengthening the economic against future shocks was one of the priorities of the German presidency.

Schaeuble said the adopted list of principles included policy recommendations for example on labour market regulation, but also for international trade and the "importance of open markets".

The adopted document, of which obtained a copy, is entitled "Note on Principles in Economies". The list is organised around five broad themes - real sector, public finance, private finance, monetary policy and external sector.

The list includes the advice to "strengthen macroeconomic foundations and policy frameworks to reap the benefits of openness to trade and international capital flows".

It also calls on governments to "ensure that the benefits from trade are widely shared throughout the entire economy".

In the section on public finances, it says governments should ensure that public debt is on a sustainable path taking into account "longer term structural fiscal pressures".

In their main communique, the countries dropped on a pledge to keep an open and inclusive global trade system after being unable to find a suitable compromise with an increasingly protectionist United States.

In an apparent reference to U.S. proposals to introduce a border tax to favour exports over imports, the separate document on warns against negative spillover effects from individual policy actions.

"While the effects of individual policy actions are amplified through positive cross-border spillovers, any possible negative cross-border spillovers arising from individual policy actions should also be considered," it says.

The International Monetary Fund chief economist Maurice Obstfeld warned on Monday that U.S. proposals to overhaul the U.S. tax code by favouring exports over imports could have spillover effects to other economies such as Saudi Arabia as the measure was likely to strengthen the dollar.

(Reporting by Michael Nienaber,; Editing by Stephen Powell)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
177 22

G20 adopt list of principles to strengthen economic resilience

By Michael Nienaber

BADEN-BADEN, (Reuters) - The world's financial leaders adopted a list of principles on Saturday to boost the of their economies against future shocks, including the advice to strengthen policy frameworks to reap the benefits of open markets.

"The risks for the global economy continue to persist of course, some even say they have rather increased," German Finance Minister Wolfgang Schaeuble said on Saturday during a conference at the end of the meeting in Baden-Baden.

"This is why it's all the more important that we are well prepared," Schaeuble said, adding that strengthening the economic against future shocks was one of the priorities of the German presidency.

Schaeuble said the adopted list of principles included policy recommendations for example on labour market regulation, but also for international trade and the "importance of open markets".

The adopted document, of which obtained a copy, is entitled "Note on Principles in Economies". The list is organised around five broad themes - real sector, public finance, private finance, monetary policy and external sector.

The list includes the advice to "strengthen macroeconomic foundations and policy frameworks to reap the benefits of openness to trade and international capital flows".

It also calls on governments to "ensure that the benefits from trade are widely shared throughout the entire economy".

In the section on public finances, it says governments should ensure that public debt is on a sustainable path taking into account "longer term structural fiscal pressures".

In their main communique, the countries dropped on a pledge to keep an open and inclusive global trade system after being unable to find a suitable compromise with an increasingly protectionist United States.

In an apparent reference to U.S. proposals to introduce a border tax to favour exports over imports, the separate document on warns against negative spillover effects from individual policy actions.

"While the effects of individual policy actions are amplified through positive cross-border spillovers, any possible negative cross-border spillovers arising from individual policy actions should also be considered," it says.

The International Monetary Fund chief economist Maurice Obstfeld warned on Monday that U.S. proposals to overhaul the U.S. tax code by favouring exports over imports could have spillover effects to other economies such as Saudi Arabia as the measure was likely to strengthen the dollar.

(Reporting by Michael Nienaber,; Editing by Stephen Powell)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22