G7 Finance Ministers Meet: Outcomes and Highlights

G7 Finance Ministers and Central Bank Governors held their meeting at Bari in Italy.

In the meeting, they reiterated their commitment to use all policy tools – monetary, fiscal and structural – individually and collectively to achieve the goal of strong, sustainable, balanced and inclusive growth.

The OECD report “A Fiscal Approach for Inclusive Growth in G7 Countries” provides guidance on the development of an inclusive growth agenda in economies.

They agreed on the Bari Policy Agenda on Growth and Inequalities, which provides a framework to foster inclusive growth through a broad menu of policy options.

They recognise the importance of integrating equity objectives into policy-making. In this context, the IMF report “Gender Budgeting in G7 countries” provides guidance on how to promote gender equality throughout the budgetary process.

They considered to take into account the Bari Policy Agenda in G20 growth strategies.

They recognised the critical role that the MDBs play in supporting developing countries to deliver the 2030 agenda for sustainable development. To fulfill this role, the IFI system as a whole must make the best possible use of capital and donor contributions, within their mandates, to collectively achieve long-term development impact.

They strongly supported the work of the Financial Action Task Force (FATF) and the Egmont Group of Financial Intelligence Units in improving the implementation of international standards and sharing best practices on these issues.

They recalled the need to both promote financial inclusion and mitigate terroris m financing and money laundering risks within the Money and Value Transfer Services (MVTS) sector.

They welcomed the IMF’s Financial Sector Stability Fund (FSSF), a new capacity development initiative aimed at strengthening financial sector stability in low and lower middle income countries, which will help foster greater integrity, inclusion and deepening in the financial system, as well as the ongoing work supported by the IMF’s AML/CFT Topical Trust Funds.

They mandated the G7 Cyber Expert Group (G7 CEG) to develop a set of high level and non-binding fundamental elements for effective assessment of cybersecurity by October 2017. Since its inception in 2015, the G7 Cyber Expert Group has developed a high degree of mutual sharing and trust with a diverse membership providing a unique platform for international coordination on cyber security.

They remain committed to work for globally fair and modern tax systems and to achieve a global level playing field for all engaged in economic activities. To this end, timely, consistent and widespread implementation of the G20/OECD BEPS (Base Erosion and Profit Shifting) package is crucial.

They encouraged all relevant and interested countries and jurisdictions to commit to implement the BEPS package and join the G20/OECD Inclusive Framework on BEPS.

They look forward to the first signing on 7th June 2017 of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS.

The “Bari Declaration on fighting tax crimes and other illicit financial flows” reflects their determination to use a holistic approach to fighting against tax and financial crime based on effective interagency and international cooperation.

They remain committed to the principles of the Addis Tax Initiative and they support the work of the Platform for Collaboration on Tax, acknowledging its key role in deepening collaboration between the international organisations and enhancing effective external support in building tax capacity.

The G7 Finance Ministers and Central Bank Governors’ meeting in Bari (May 11-13) ended with the adoption of the Joint Communiqué and of three documents.
1. Communiqué G7 Finance Ministers and Central Banks’ Governors Meeting
2. Bari Policy Agenda on growth and inequalities
3. G7 Bari Common Declaration on fighting tax crimes and other illicit financial flows
4. Promoting Best Practice in the Money or Value Transfer Services Sector – G7 Framework