Ministers are expected to be de-briefed on last week's G20 meeting and to begin preparing for the IMF /WB annual meetings on 3-4 October. Ministers are also set to continue discussions, started in July, on the effect of the crisis on potential growth.
Ministers are expected to be de-briefed on last week's G20 meeting and to begin preparing for the IMF /WB annual meetings on 3-4 October in Istanbul. Ministers are also set to continue discussions, started in July, on the effect of the crisis on potential growth at country level.
The following issues will be discussed:
· Exit Strategies, with particular focus on fiscal policy and the need for coordination of a comprehensive strategy going beyond a return of policies to normality. The aim of the strategy would be to sustain the recovery, rebuild a stable and viable financial sector able to sustain lending without state support, ensure fiscal sustainability and strengthen potential growth, partly by enhancing the quality of public finances and tackling macro-economic imbalances.
· Economic and financial situation: signs of improvement in the economic situation have become increasingly apparent since the start of the autumn and fears of a prolonged, deep recession are fading. The important policy interventions have succeeded in achieving some stabilisation in the financial system and in providing support to economic activity. However, there are reasons to believe that the recovery could prove volatile and sub-par.
· Financial supervision issues: the proposals will go a long way towards tackling the imbalances in our financial systems and solving the weaknesses in the financial supervision system, which are at least partly to blame for the financial crisis. Ministers are expected to have a first discussion on the draft legislation which EU leaders want to see agreed swiftly so that it can come into force in 2010.
· Preparation of the IMF/WB meeting: the IMF meeting will focus on the appropriate policy mix which countries should follow in the coming years and on the IMF's governance reform and its future role. European Member States have made a financial pledge of up to € 125 billion to bolster the IMF's resources, which is by far the largest financial contribution coming from IMF member countries. Ministers will discuss the forthcoming quota and voice review, which envisages an increase in the voice and representation of under-represented emerging markets and developing countries.
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