The author is a Reuters Breakingviews columnist. The opinions here are his own.
The Group of 20’s pledge to refrain from currency wars rings hollow. The world’s most important finance officials have neither asked the United States to delay raising interest rates, nor provided another plan to stop capital from fleeing China and other developing economies. Without these two steps, it’s unclear how the G20 can prevent the exchange rates of many of its members from continuing to swoon against the dollar.
EU foreign ministers will discuss action on migration across the Mediterranean at a meeting in Luxembourg today. As many as 700 people are feared dead after a fishing boat packed with migrants capsized off the Libyan coast over the weekend.
G20 finance ministers and central bankers meeting in Istanbul will pledge to act decisively on monetary and fiscal policy if needed to combat the risk of stagnation, according to a draft communique obtained by Reuters last night. As has been customary at these summits, a lot of the discussion implicitly centres on Germany.
Alexis Tsipras is not for turning, not yet anyway.
Speaking in parliament on Sunday night the new Greek premier said he would not accept an extension to Greece's current bailout, something the euro zone is urging him to do, and stuck with austerity-ending pledges such as giving free food and electricity to those who need it, reinstating civil servants who had been fired as part of bailout conditions and raising the minimum wage. Privatisations have already been halted.
from The Great Debate UK:
With six months to go until the next general election and a few days from an all-important by-election, Prime Minister David Cameron has said that the global economy is at risk from another recession. This came less than a week after the Bank of England said that the UK economy is likely to grow at a healthy 3.5 percent this year and it could even weather the storm from weak growth across the Channel.
After European Central Bank chief Mario Draghi managed to bring his colleagues into line to sign up to his 1 trillion euros or so target to push into the ailing euro zone economy, today sees a raft of third quarter GDP reports which are likely to show just why more help may be needed.