Meeting of the G20 finance ministers and central bank governors
Bern, 11.10.2013 - Federal Councillor Eveline Widmer-Schlumpf took part in the G20 Finance Ministers and Central Bank Governors' Meeting on 10-11 October in Washington. The most important issues concerned the global economic situation, the reform of the international financial architecture and financing for long-term investment.
Federal Councillor Eveline Widmer-Schlumpf was accompanied at the G20 meeting by Thomas Jordan, Chairman of the Governing Board of the Swiss National Bank. A key item on the agenda was the assessment of the latest developments in the global economy and the financial markets. This includes the impact of unconventional monetary policy on international capital flows, the increased susceptibility of certain emerging economies to market fluctuations and the persistently tentative recovery in the eurozone. In addition, the ministers and central bank governors took note of the state of the United States' efforts to ratify the IMF quota and governance reforms of 2010. Furthermore, they discussed the progress made in adjusting the IMF guidelines for public debt management. Finally, they discussed possibilities for increasing long-term investment activity, particularly in infrastructure.
Switzerland stressed the need to develop and implement credible strategies for consolidating public finances in the advanced countries. Switzerland also pointed out the dangers involved in maintaining monetary easing for too long. One such danger could lead in particular to risks for financial stability and price stability if the required strengthening of government finances and financial sectors does not occur.
In Switzerland's opinion, ratification of the 2010 reform is a prerequisite for further discussions on the IMF quotas and the funding of the institution. In particular, the reform should be fully implemented also with regard to improved representation of the emerging economies on the Executive Board.
For Switzerland, long-term investments should be promoted primarily with the appropriate framework at the state level. This includes economic openness, a stable financial sector and sustainable fiscal policies. The main role in investment activity should be played by the private sector.
Financial market regulation and cross-border tax issues were not on the agenda for the meeting. Extensive work programmes in these areas were adopted at the September summit of the heads of state and government in St. Petersburg, and these are now to be implemented.
At the invitation of the Russian presidency, Switzerland will take part this year in the G20 Finance Track. Along with the meetings at ministerial level, this will involve all preparatory meetings for high-level officials and meetings of the most important G20 working groups on financial matters.
Address for enquiries
Mario Tuor, Head of Communications, State Secretariat for International Financial Matters
mario.tuor@sif.admin.ch
tel. +41 31 322 46 16
Publisher
Federal Department of Finance
https://www.efd.admin.ch/efd/en/home.html