MILANO – Global vaccination is the priority for the restart, and campaigns actually pay for themselves with higher tax revenues and lower expenses to support economies. And to finance the expenses and support necessary to fight the crisis triggered by the coronavirus pandemic, “the political authorities could consider a contribution to the recovery from Covid-19, imposed on high incomes or large assets”.
Gopinath: “Italy relaunches itself if it makes structural reforms to promote productivity”
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The suggestion is contained in the International Monetary Fund’s Fiscal Monitor, according to which “reform is needed to raise the resources needed to improve access to basic services, strengthen social safety nets and efforts to achieve the Sustainable Development Goals. of domestic and international taxation, especially when the recovery has picked up pace “.
The blog accompanying the IMF document explains that “if the global pandemic is brought under control through vaccinations, the strengthening of economic growth would bring over $ 1 trillion in additional revenue to advanced economies by 2025 and would also allow greater savings on the front. support measures “. In this way, “vaccinations against Covid-19 would pay for themselves, providing excellent value for the investment of public money”.
The United States is driving the global recovery. The IMF’s estimate is improving, but growing inequalities are worrying
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On the large numbers of public finances, the IMF recalls that financial support “prevented a tougher contraction of the economy and a greater loss of jobs. Meanwhile, this support, together with a decline in revenues, has increased deficit and debt at unprecedented levels. The average total deficit in 2020 reached 11.7% of GDP for advanced economies, 9.8% for emerging economies and 5.5% for countries around the world. of development […] The world average of public debt has reached an unprecedented level of 97% of GDP in 2020 and is expected to be around 99% in 2021. “For Italy, the estimate is that the debt-to-GDP ratio will rise to 157.1 % in 2021 and then begin to decline in subsequent years, but is expected to remain above 150% until at least 2026.
G20 financial, recovery is uneven: commitment to protect jobs and incomes
A restart was also discussed at the financial G20 under the Italian presidency, at the end of which the conference of the Minister of the Economy, Daniele Franco was held: “After the economic contraction of 2020, global prospects have improved thanks to vaccines and policies put in place act, but the recovery is clouded by uncertainty, and uneven. The G20 renewed its commitment to avoid any premature withdrawal of support measures “and reaffirmed” its willingness to use all available tools, for the time necessary, to protect jobs and incomes, “Franco said.
The G20 meeting highlighted “significant risks” that would arise from a premature withdrawal of aid to economies, and ministers and governors agree that support measures will be reduced, or eliminated, “gradually, to minimize the risks” , Governor Ignazio Visco further detailed.
In a passage of his conference, Franco returned to the topic of the minimum international taxation of multinationals, strongly relaunched in recent days by the American administration, recalling that “it has been on the table for several years and now we see an acceleration of the process: the G20 is expects to reach an agreement by July, hopefully in the third meeting of ministers and governors to be held in Venice “.
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