G7 and G8 finance ministers’ meetings
The Minister for the Economy, Finance and Industry made a statement on the G7 and G8 finance ministers’ meetings.
The finance ministers and central bank governors met in Marseille on 9 September 2011, under the chairmanship of the Minister for the Economy, Finance and Industry and the Governor of the Bank of France.
The G7 finance ministers’ meeting provided an opportunity for in-depth consultation on the global economic and financial situation,
current risks to growth, and policies to conduct to deal with these.
Each state set out its economic policy guidelines. Strengthening financial regulation was also discussed.
The G7 finance ministers’ meeting enabled four major steps forward to be taken on financial stability and growth:
a renewed focus by all the central banks on both price stability and support for economic recovery;
a resolute commitment from the central banks to providing banks with liquidity where appropriate;
a determination on the G7’s part to take all necessary measures to guarantee the resilience of banking systems and financial markets;
finally, a convergence of views on the budgetary policies to conduct, to seek a concerted recovery and pursue a gradual, differentiated consolidation adapted to different national circumstances. Given the fragile nature of the recovery, the G7 states are aware of the balance to strike between budgetary austerity and support for economic activity.
The Minister for the Economy, Finance and Industry then chaired, in Marseille on 10 September, a meeting of finance ministers of the Deauville Partnership, launched on 27 May 2011 by the G8 heads of state and government. The meeting enabled the Partnership’s economic pillar to be created, with a view to ensuring that the macroeconomic stability of the partner countries is maintained in the short term and supporting those countries’ transitions in the longer term.
The Marseille meeting enabled the Partnership to be broadened, welcoming Jordan and Morocco as beneficiary countries and Saudi Arabia, the United Arab Emirates, Kuwait, Qatar and Turkey as associated countries. Libya was also welcomed into the Partnership and received an assurance that frozen assets would shortly be released.
The finance ministers also agreed on financial support to enable those countries in transition to implement their development plans. This support depends firstly on massive multilateral aid, made available through close coordination between the financial institutions for development: over the 2011-2013 period, $38 billion will be allocated to the four countries in transition. Furthermore, the International Monetary Fund (IMF) confirmed its readiness to provide all its expertise, as well as financial support of nearly $35 billion, to the four countries concerned.
Beyond this powerful multilateral response, bilateral resources will be fully mobilized and should increase – in accordance with the announcements made at the Deauville summit – in proportion with the increase in multilateral support. As far as France is concerned, a finance package of €2.7 billion will be allocated in the coming months, depending on the requests expressed by the four countries. Finally, economic support will take the form of ambitious trade integration of the partner countries.
The process was extended, with a follow-up being organized on the occasion of the next ministerial meeting in Washington, on the sidelines of the Spring Meetings of the World Bank and IMF./.