G20 Finance Ministers: Brexit vote unsettled world economy

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G20 Finance Ministers: Brexit vote unsettled world economy

The G20 Finance Ministers want to radiate after their Meeting in Chengdu Confidence. According to the planned exit of Britain from the EU, their message is “All that bad”, uncertainty remains.

The leading industrial and emerging countries (G20) for the possible consequences of the planned Brexits well prepared. “The G20 countries are well placed to pro-actively address potential economic and financial impact resulting from the vote in the United Kingdom,” it said in the Declaration approved by the Minister of Finance, after two days of discussions in the Chinese city of Chengdu. “For the future, we hope that the UK is a close Partner of the EU”, – stated in the paper. The G20 countries noted, however, that the Brexit vote of the British reinforcing the uncertainty of the world economy.

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Schäuble is expected to be difficult negotiations

Federal Finance Minister Wolfgang Schäuble, who had met on the sidelines of the G20 talks with his British counterpart, Philip Hammond, said: “We will have good cooperation in difficult negotiations.” Still no quick line drawing for a withdrawal of Britain from the EU, Schäuble.

Hammond said the uncertainty about Brexit would subside as soon as the UK have developed his ideas about the future of relations with Europe, what will be the end of the year. In order to start negotiations with the European Union, London to announce, in accordance with article 50 of the Lisbon Treaty, officially the exit. After two years of time to negotiate the terms. Prime Minister Theresa May had announced that article 50 is not the end of the year.

Weaker recovery of the world economy

The upturn in the global economy, the G20, in the Declaration were, once again, to take both structural reforms as well as monetary and fiscal policy measures. With a view to the continuing policy of cheap money by the Central banks, it was said that this strategy will continue to support the economy and to achieve price stability. The Minister stressed that the recovery of the world economy set though, but “weaker-than-sought”, he said.

With its deliberations of the Finance Ministers and Central Bank governors, prepared for the G20 summit on 4. and 5. September in the Chinese city of Hangzhou. China holds this year for the first time, the presidency, the leading industrialised and emerging countries.

fab/cw (dpa, rtre)