G7 Leaders: Boost the Global Economy

May 27, 2016

The Mainichi Shimbun reports:

"The Group of Seven (G-7) leaders agreed at their annual summit on May 26 that their countries will use monetary policy, fiscal stimulus measures and structural reform to lead the world economy out of its current slump.

"This will be incorporated in the leaders' "Ise-Shima Economic Initiative" joint declaration to be issued at the end of the summit on May 27.

"However, the timing of stimulus spending will be left to the discretion of each member country.

"During discussions on the roles that the G-7 should play, Japanese Prime Minister Shinzo Abe said, "We should show our leadership in achieving sustainable and dynamic growth of the world economy." He then asked his fellow G-7 leaders to cooperate in using taxpayers' money to help expand their economies, saying, "Japan wants to spearhead this move, but we must promise to make investments that will contribute to economic growth."

"None of the leaders raised questions about the need for such measures, with some pointing out that the effects of using public funds will lead to increased middle-class incomes. 

"However, how far the G-7 countries will cooperate in using public funds for economic stimulus will depend on each country, as Germany and Britain favor fiscal discipline.

"With regard to Abe's remarks that the world economy risks falling into crisis if the G-7 makes a mistake in policy responses, the leaders shared the view that there is uncertainty in emerging economies. However, at least one attendee raised questions over the fear of economic crisis, noting that there are signs that oil prices are picking up.

"The G-7 countries will coordinate their leaders' views before issuing the joint declaration.

"Regarding the tax haven issue that has drawn attention since the disclosure of the "Panama Papers," the G-7 leaders agreed to step up efforts to prevent tax avoidance. They agreed to work out an action plan that will include specific measures including identifying the owners of dummy companies established to dodge taxes, and expanding the framework for governments to exchange information on bank accounts held by wealthy people and large companies.

"The G-7 leaders also agreed to adopt a principle of contributing to creating jobs and protecting the environment in extending infrastructure improvement assistance to developing and emerging countries. They also share the view that it is necessary to promote women's empowerment, such as those to help female researchers develop."

Source: The Mainichi Online, 27 May 2017, http://mainichi.jp/english/articles/20160527/p2a/00m/0na/006000c


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