G7 Summit

G7 Finance Ministers meet in Dresden

Growth without new borrowing

At the end of the meeting of the G7 finance ministers, Federal Finance Minister Wolfgang Schäuble emphatically advocated "growth without new borrowing ". He said, "Sustainable growth calls for sound public finances,” and this is a goal that nations can only achieve by working together.

Wolfgang Schäuble, Federal Finance Minister Federal Finance Minister Wolfgang Schäuble is working for growth without new borrowing Source: Bundesregierung/Kugler

The G7 are pulling together to reduce sovereign debt. At the closing press conference in Dresden the minister praised the unanimity demonstrated. "All nations have stressed the huge importance of structural reforms. That is a major success in itself."

More steps to prevent tax avoidance

Parallel to ongoing initiatives, Wolfgang Schäuble reported that the G7 states intend to step up their war on tax evasion and tax avoidance strategies on the part of major companies with international operations. The aim is to actually enforce measures to clamp down on tax structuring and transfers of profits.

An arbitration process ought to determine in which country global enterprises should pay taxes. There are also plans to involve poor developing countries and help them put in place effective tax administrations, thus generating their own tax revenue.

Agreement on Greece

There was also agreement on Greece, which only took up "a few minutes" at the meeting in Dresden, according to Wolfgang Schäuble. While the Greek government continues to demonstrate optimism, the Federal Finance Minister dampened any expectations of a rapid agreement with creditors. "The positive news from Athens does not entirely reflect the actual status of talks with the country’s creditors."

Emergency aid for Nepal

The G7 states intend to extend additional financial assistance to Nepal in the wake of the disastrous earthquakes. "We are pushing ahead with additional emergency measures, additional financial assistance including debt relief," announced Wolfgang Schäuble.

The finance ministers and central bank governors of the G7 states meet regularly. From 27 to 29 May, Federal Finance Minister Wolfgang Schäuble and Bundesbank President Jens Weidmann hosted a meeting in Dresden that was also attended by the heads of the IMF, World Bank and OECD, as well as the President of the European Central Bank, the Eurogroup President and the European Commissioner for Economic and Financial Affairs. It was the third meeting of finance ministers within the scope of Germany’s G7 Presidency, and served in part as preparation for the G7 summit in Schloss Elmau on 7 and 8 June.

Friday, 29 May 2015