At the conclusion of the annual meeting of the International Monetary Fund (IMF) and World Bank have German Finance Minister Wolfgang Schäuble (CDU) and Bundesbank President Jens Weidmann warned that the global economic situation, particularly the situation in the Euro zone black paint. “There is no reason to talk about the global economy in the crisis,” Schaeuble said at the weekend in the nation’s capital. Weidmann stressed in Germany although there was a further weakening of development, “but no burglary.”
IMF chief Christine Lagarde rejected negative assessments. The growth should be back and there is a recovery, it said at the end of the meeting. But governments should also take bold steps. Mario Draghi, President of the European Central Bank (ECB) was in the nation’s capital optimistic that the economy will develop positively in the euro zone.
“We have no pressure felt,” said Schäuble
Bank President and German Bank Co-CEO Juergen Fitschen expressed cautious in Washington as well as leading U.S. bankers and ministers and central bankers from African countries for which Europe is an important trading partner. Weak growth in Europe is currently the biggest problem in the world economy. The IMFC, the steering committee of the IMF, assured in the final declaration that would 188 member states of the IMF and World Bank take “bold and challenging” measures to provide the basis for robust and sustainable growth. The committee called for further structural reforms and increased investment. Concrete decisions were in Washington do not.
Schäuble and Weidmann rejected the impression that Germany had been at the meeting of the IMF and the meeting of G20 finance ministers and central bank presidents because of weak growth in defense and had become classified as worries case. “We have felt no pressure here. We are aware of our responsibility for the world economy, “said the Minister. He stressed that the economy will go in Germany because of the sanctions Russia weaker run. They made mainly in Germany noticeable.
Weidmann warns against reform fatigue
IMF, G-20 and the 188 member states vote to one that the structural reforms continue, the stabilize the financial system and fiscal consolidation should continue. “Reform fatigue is one of the downside risks,” Weidmann said. Since there is also a need for action in Germany, such as the energy transition, with approval procedures and in the education sector. At the same time, the IMF, World Bank and finance ministers agreed on driving investment. World are doing in the next five years two trillion dollars spent and thus millions of new jobs will be created. “We want to improve public and private investment,” Schäuble said. It is not just about investing in concrete, but also to education and research.
Similarly, it looks Bank President hinge plates. But he also said that it was now difficult for banks to finance long-term projects over a period of about 20 years. Other German banker stressed, in Germany it hapere especially in investments at the local level.
The monetary policy risks have increased
Further reforms are, according to Schäuble and Weidmann also necessary because the geopolitical risks have increased. They referred to the situation in Ukraine and in the Middle East and also on the Ebola epidemic in West Africa. A particularly dramatic appeal addressed Kaifala Marah, the Finance Minister of Sierra Leone, gathered at the ministers and bankers: “We had double-digit growth rates on the right track. Then came Ebola “. Complete economic sectors subject to the floor, the tourism and air transport would suffer dramatic losses. “Our country is in fact isolated.” In addition to the human drama there is virtually an economic embargo, which also reinforces the crisis.
The IMF provides immediate $ 130 million for the three affected countries prepared the World Bank mobilized $ 400 million. “We are making progress, but we still lag behind,” said World Bank President Jim Yong Kim. “The situation is worse today than ten days ago.” Countries and companies who wanted to help should do today and not tomorrow. Also Lagarde and Kim warned to isolate the affected countries. The World Bank estimates the economic damage to Sierra Leone, Liberia and Guinea and the region by 2015 to more than $ 33 billion, if the epidemic is still does not mitigate.