Growth in the euro area as a whole has yet to materialise. Continued progress in improving public finances is essential in most advanced economies. Where country circumstances allow, fiscal policies should avoid pro-cyclicality, focus on structural balances, and let automatic stabilisers operate fully to support growth. Credible medium-term fiscal consolidation plans remain crucial, in particular for the United States and Japan. Accommodative monetary policy is still needed to help bolster growth but needs to be accompanied by credible medium-term fiscal consolidation plans and stronger progress on financial sector and structural reforms. This will also help contain any potential impacts of monetary easing on capital flows and exchange rates. Eventual exit from monetary expansion will need to be carefully managed and clearly communicated. In the euro area, further progress in repairing bank balance sheets and reducing financial fragmentation is crucial. Structural reforms to boost productivity and employment need to continue. Further tangible progress is needed on core elements of an effective banking union and a stronger fiscal union, to strengthen the resilience of the monetary union.
IMFC urges members who have yet to complete the necessary steps to ratify the 2010 reforms to do so without delay. IMFC remains committed to complete the reform of the Fund’s quota and governance structure, which is key to its credibility, legitimacy, and effectiveness. IMFC will integrate work on a new quota formula with work on the Fifteenth General Review of Quotas. The quota formula should be simple and transparent, consistent with the multiple roles of quotas, produce results that are broadly acceptable to the membership, and be feasible to implement statistically based on timely, high quality and widely available data. IMFC urges the Executive Board to agree on a new quota formula as part of the Fifteenth General Review of Quotas. Any realignment is expected to result in increases in the quota shares of dynamic economies in line with their relative positions in the world economy, and hence likely in the share of emerging market and developing countries as a whole. Steps shall be taken to protect the voice and representation of the poorest members. IMFC reaffirms its commitment to complete the Fifteenth Review by January 2014.
Full communiqué
Transcript of the IMFC-Press Conference
-
EU Statement by Olli Rehn, Vice President, European Commission
-
EU Statement by Michael Noonan, Minister of Finance, EU Council of Economic and Finance Ministers
-
US Statement by Jacob J Lew, Secretary of the Treasury, Department of the Treasury
-
German Statement by Wolfgang Schäuble, Minister of Finance, Bundesministerium der Finanzen
-
Italian Statement by Vittorio Umberto Grilli, Minister of Economy and Finance - on behalf of Albania, Greece, Italy, Malta, Portugal, San Marino
-
Swedish Statement by Anders Borg, Minister of Finance, Ministry of Finance - on behalf of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, Sweden
© International Monetary Fund
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article