Gentiloni: European economies “are sailing in turbulent waters”, “targeted and temporary” aid is needed
Reduce poverty, and remedy the energy price increases, these are the key objectives highlighted by the European Commissioner for Economy Paolo Gentiloni, at the end of the informal meeting of the Eurogroup held in Washington DC on the sidelines of the meetings of the World Bank and the International Monetary Fund.
From Europe 100 million to reduce poverty
“With the today’s contribution of € 100 million to the Trust Fund for Poverty Reduction and growth we are integrating and supporting the efforts of our Member States “in support of vulnerable countries and” this decision represents a very important signal that comes at the right time “said the European Commissioner when the Commission signed the commitment .
“The economic shockwaves caused by Russia’s war against Ukraine are hitting low-income countries hardest, stimulating demand for soft loans to the IMF Trust Fund,” Gentiloni recalled. “This is why it is important to reach the global target set at the G20 of 100 billion in voluntary contributions from special drawing rights for vulnerable countries. Now we have reached 80 billion already promised, of which 23 billion come from EU member states ”he added.
Gentiloni: “It is essential to implement a minimum global taxation as soon as possible“
At the end of the meeting, which was also attended by the secretary to the US Treasury, Janet Yellen, the commissioner then declared that the European economies after the recovery from the pandemic, are back to “sailing in turbulent waters”and urged “all Member States to support the second pillar directive as soon as possible” of the OECD agreement on minimum global taxation “to ensure its rapid implementation. The Commission is ready to use all possible legal instruments to achieve this goal” .
The new minimum taxation rules “should bring necessary additional revenue in this difficult economic and geopolitical phase. Equally important are the new rules, together with those that will result from the implementation of the first pillar on the reallocation of taxation rights, which will bring greater equity to the world ”.
We need “targeted and temporary aid” on energy price increases
To respond to this crisis, and to remedy the energy price increases in the EU, however, the measures to support the economy and the budget proposals of the Member States must be “targeted and temporary“:” They must avoid further fueling inflation, jeopardizing progress towards our climate goals or creating a permanent burden on public finances. We will evaluate the next budget projects for 2023 also from this perspective ”, declared the European Commissioner again.
“From the UK we have lessons to learn”
Responding to a question about the suggestions he would give to the new British Chancellor of the Exchequer, Gentiloni finally commented on how theEuropean Union has not “nothing to teachlet alone the United Kingdom ”, indeed“ maybe we have lessons to learn ”. What happened to the British government “reminds us how volatile the situation is and how cautious we need to be with our mix of fiscal and monetary policies. We wish Jeremy Hunt all the best for his assignment ”.
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