The G20 countries have reached an agreement to increase the resources for the International Monetary Fund by 650 billion dollars, so that it can further help the countries most vulnerable to the crisis caused by the coronavirus pandemic. After the draft on the agreement, the Minister of Economy, Daniele Franco, confirmed the request to the IMF: “The G20 asked the International Monetary Fund to put forward a proposal for the allocation of new special drawing rights for 650 billions of dollars, in order to meet the need for additional reserves ”.
The agreement is supported by finance ministers and central bank governors of the 20 largest economies in the world, who return to promise to fight protectionism in world trade, a reference absent from previous press releases following US pressure with the administration. Trump. The G20 countries also agree to extend the debt suspension of the poorest countries until the end of 2021.
On the other hand, the IMF proposes a solidarity tax to finance the expenses and support necessary to fight the crisis. In its Fiscal Monitor, the Fund invites “political authorities to consider a temporary contribution for the recovery from Covid-19, imposed on high incomes or large assets”.
The goal is to reduce the inequalities that have been exacerbated by the pandemic, with a few large companies making huge profits and young people, women and less skilled workers paying the highest price. A contribution that, say the technicians of the Washington institute, should be accompanied by a “reform of domestic and international taxation, especially when the recovery has picked up pace”. According to the IMF, “If the global pandemic is brought under control through vaccinations, boosting economic growth would bring over $ 1 trillion in additional revenue to advanced economies between now and 2025 and would also allow for greater savings in support measures. “. In this way, the report notes, “vaccinations against Covid-19 would pay for themselves, providing excellent value for the investment of public money”.