"As of today, we have forged ahead on key areas of reform of the global financial system and as of today we have launched a global infrastructure initiative to work with business and remove key barriers to more investment in infrastructure."
- Joe Hockey, Treasurer of Australia
This weekend the finance leaders, including finance ministers and central bank governors of world's largest economies held their regular and planned meeting in Caims, Australia in order to discuss the most recent developments in global economy, just before the annual meeting of leaders of the countries is going to take place in November in the city of Brisbane. As the summit had last preparations to begin, the Treasury Secretary of Australia aimed the discussion to be focused on tax issues, therefore coming up with the common agreement on companies' earnings, as they would have to pay their taxes, where they earn money. The common agreement on tax evasion and tax avoidance was reached. Destabilising factors in the global economy were discussed as well. IMF chief Christine Lagarde mentioned tensions between Russian and Ukraine. Moreover, growth in China, Russia, the Eurozone and Japan is experiencing difficult times, meaning that overall economic conditions may remain subdued in the nearest future.
The IMF, on the other hand, insisted on putting more focus on large-scale reforms in member-states. Moreover, countries should pay more attention to growth, as it was much weaker than predicted in first six months of this year. Going back to G20 meeting in February, finance leaders came to agreement that their economies should advance, on average, by 2% in next five years.
© Dukascopy Bank SA