GDP Europe

September 8, 2015 | Uncategorized

This Thursday, April 2, 2009, this expanded G-20 leaders will meet in London. Countries that meet 75% of the population and 80% of world GDP. Therefore, the representation is very high but, what can we expect from this meeting? Are various and very important issues to be discussed at the Summit, in which there are different interests and different tendencies that will try to somehow find a meeting point. One of the topics about which to rotate the encounter, and is promoted mainly by Europeans but now it seems the United States, with the announcement of the creation of a supervisory agency, had joined the initiative-is the new regulation of the financial markets. This is an issue on which emphasis Merkel and Sarkozy have done, and that seems necessary to avoid committing excesses similar to those who have lived, with products of financial engineering that few or no one understood at all, and outside the balance sheet of the banks in the future.

A topic related to this and that he could be treated at the Summit is the of tax havens, which have been in many cases involved in money-laundering and large speculative movements of capital. Another of the important issues to treat is the magnitude and the coordination of fiscal policies (pubic spending, tax reduction) to perform at the global level. We are the first global crisis of these characteristics, and in fact big exporters like Germany and Japan are suffering a great impact on their economies because of this globalization. If the crisis affects everyone, because the economy is interconnected at many levels, the ideal is that the policies adopted in this sense have a common basis. United States is the main driver of this proposal, since in addition to the huge resources that it has launched in its various plans, insists that Europe must do the same; in the old continent, the plans have not been so ambitious, partly due to the absence of a common fiscal policy there is, to put it in some way, a Ministry of economy and Hacienda European-, and partly by the weight of the the welfare State in Europe, so that protection and aid to the citizens of Europe in this situation are quite higher than in the United States, and the cost of this system also (and already assumes a transfer of funds from the State towards citizens), so that already implies an increase in the public deficit but do not make investment through public spending, not tax cuts.


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