- EU Summit: The European Council (heads of state) hold a virtual meeting on June 18 to ostensibly discuss the EU’s May 27 Recovery Fund proposal. Some have heralded the proposal as a key turning point in the evolution of Europe, and the possibility of a so-called Hamiltonian moment, a major set toward fiscal union, has been suggested. We have been less sanguine; recognizing the potential scaffolding for a greater union, but also that projecting emergency actions into the future is fraught with danger. Austria and Denmark, which have pushed back against grants instead of loans, could be won over by assurances that their rebates will remain intact. Others, including Eastern and Central European members, may be more difficult to persuade. Although expectations are running high, we suspect an agreement will remain elusive, in which case another try will be at the July summit, which, with a little luck, could be in person. Disappointment could weigh on the euro.
Archives of “Group of Seven” tag
rssWhite House: G7 leaders agree to remain committed to global response to coronavirus
White House comments regarding G7 leaders
- G7 leaders agreed to remain committed to global response to humanitarian, economic calamity stemming from pandemic and to launch a strong and sustainable recovery
- leaders called for a thorough review and reform process that World Health Organization
- much of G7 leaders call centered on lack of transparency and chronic mismanagement of the pandemic by the World Health Organization
- G7 leaders discussed efforts to pool research on coronavirus by sharing data and making it publicly available
G7: “We will do whatever is necessary” to restore confidence
G7 statement
- We are taking action and enhancing coordination on domestic and international policy efforts to respond to epidemic
- We pledge to promote global trade and investment
- Says they are pushing liquidity support and fiscal expansion
Statement of G7 Finance Ministers and Central Bank Governors
Consistent with the direction from G7 Leaders, we are taking action and enhancing coordination on our dynamic domestic and international policy efforts to respond to the global health, economic, and financial impacts associated with the spread of the coronavirus disease 2019 (COVID-19). Collectively, G7 nations have already enacted a wide-ranging set of health, economic, and financial stability measures. We will do whatever is necessary to restore confidence and economic growth and to protect jobs, businesses, and the resilience of the financial system. We also pledge to promote global trade and investment to underpin prosperity.
Our nations are working together to fight the COVID-19 outbreak and mitigate its impact, treat those affected, and prevent further transmission. G7 finance ministries are helping advance this effort by providing the funding needed to respond to the situation. In particular, we recognize the urgent need to increase support for the rapid development, manufacture, and distribution of diagnostics, therapeutics, and a vaccine for COVID-19. We are providing bilateral and multilateral assistance to strengthen foreign governments’ prevention efforts and their health and emergency response systems.
The G7 is committed to deliver the fiscal effort necessary to help our economies rapidly recover and resume the path towards stronger and more sustainable economic growth. Alongside our nations’ efforts to expand health services, G7 finance ministries are undertaking, and recommend all countries undertake, liquidity support and fiscal expansion to mitigate the negative economic impacts associated with the spread of COVID-19.
G7 says ready to take action, including fiscal tools, where needed
The US Treasury releases the G7 statement on its website
The full statement: