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Looking at the recent G20 Finance meeting in Australia
The recent G20 meeting of global finance chiefs in Australia has paved the way for some significant developments in boosting growth across the world. Some 1,000 measures have been put forward by the G20 countries and these measures are expected to lead to increased growth of 1.8%, just short of the 2% targeted at the beginning of the year.
But this G20 conference was not just about growth. Amongst a raft of other measures Finance Ministers also discussed tax reforms and the financial sector. Although just half way through delivering two-year 15-point Base Erosion and Profit Shifting (BEPS) Action Plan which aims at tackling cross-border tax evasion, ministers reaffirmed their commitment to further strengthen tax avoidance powers and to “ensure international tax rules keep up with advances in changing business models.”
On the banking front the G20 attendees renewed their desire to see change within the financial sector, both in finding ways to mitigate risk and in overcoming the ‘too big to fail’ mentality. On this latter issue, the G20 financial stability board has announced that it expects to deliver its proposals at the Leaders’ Summit in November. In the meantime ministers will continue to monitor markets closely and are particularly “mindful of the potential for a build-up of excessive risk in financial markets, particularly in an environment of low interest rates and low asset price volatility.”