The G-20 closed its summit with a strong defense of free trade – Clarín.com

At the summit of the Group of 20, which ended yesterday in the Chinese city of Hangzhou, it agreed to develop an action plan to revive the flagging global situation. Despite expectations, the meeting ended without a breakthrough to end conflicts such as Syria and Ukraine and with mere allusions to the refugee crisis and combating climate change.

“Growth remains weaker than what is desirable, “said the final declaration of the summit, with which concluded two days of meetings in eastern China and has been criticized by analysts for the” vagueness “of the text.

the G20, which brings together major industrialized and emerging nations, says it is well prepared to face the negative consequences of the projected output of the United Kingdom of the European Union (EU), although he admits that the referendum June 23 on the “Brexit” has contributed to uncertainty in the global economy. The G20 expects, however, that the UK remains a strong partner of the EU.

The member countries tried to send a message of stability and confidence. The host, Chinese President Xi Jinping, spoke of a “broad consensus” on the necessary responses to global challenges. “We have set the course to be followed by the world economy,” he said.

The G-20 was also decided to mobilize “all political tools -monetarias, budgetary and structural” to stimulate economic growth . In its action plan called “Consensus Hangzhou,” the group also rejects decisively protectionism in trade and investment.

In its diagnosis of the global economy, the G-20 states that “there are still risks of a setback for the potential of financial markets volatility, fluctuations in prices of raw materials, slow trade and investment and slow growth in productivity and employment in some countries” .

the picture is complicated, warns the G20, by the crisis of refugees, terrorism, conflict and other geopolitical events. However, the summit ended without decisive progress in the search for solutions to conflicts in Syria and Ukraine and with mere allusions to the immigration crisis, which called for greater solidarity and greater efforts in the fight against climate change.

Regarding terrorism, the G-20 believes that not only is “a serious threat to peace and security”, but also poses a risk to the global economy. “We reaffirm our solidarity and determination in the fight against terrorism in all its forms and wherever appears,” reads the text. Group members are committed to combat all forms of terrorism financing and exchange information about it.

As for the proposed measures, the G20 concludes that alone monetary policy can not generate calls for balanced growth and structural reforms and budgetary measures. Fiscal flexibility, tax policy and public spending should be redefined in terms of economic growth. However, the share of the debt to GDP should be kept “on a sustainable path”.

The G-20 also warns about the danger of “excessive volatility and disorderly movements in exchange rates “. The UN members pledged not to seek competitive advantages through devaluations of their currencies.

At the initiative of China, the statement stresses the importance of innovation. “We recognize that long term innovation is a key driver for both countries and for the global economy,” he says.

Analysts, however, shed harsh criticism for what they saw as a statement too vague . “All I can say after reading it is that we expect that unemployment remains high and risks persist,” said Tris Sainsbury, director of the Lowy Institute in Australia. “The group of 20 can speak very well, but there is no way of clear actions”.