On 18 February 2022 the G20 Finance Ministers and Central Bank Governors issued a communiqué following their meeting which took place on 17 and 18 February 2022.
Economic Recovery
The communiqué notes that the speed of the global economic recovery is still being restricted by developments in the pandemic, and the economic recovery is likely to be patchy across different countries. For many countries there is an increased likelihood that macroeconomic policy space will be limited. Supply chains have been hit by problems including inflationary pressures, but the Ministers are committed to strengthening the resilience of global supply chains. The meeting confirmed the important role for rules- based trade to help the return to growth and job creation, and remains committed to combating protectionism. The Ministers support the moves to reform the World Trade Organization.
Taxation
The G20 Ministers are committed to developing the model rules and multilateral instruments required for efficient implementation of the two-pillar international tax package agreed in 2021, so the new rules can take effect in 2023.
The communiqué welcomed the global anti-base erosion model rules for Pillar 2 and called for them to be finalised and implemented at a global level. The meeting also noted the continuing development of the Multilateral Convention for implementation of the rules in Pillar 1; and noted that technical assistance will be available to developing countries to support implementation. The meeting also supported the global and regional efforts to improve domestic resource mobilization in developing countries with capacity building support.
The Ministers affirmed their support for the progress made with work on the automatic exchange of information on crypto-assets; and they noted the work of the Inclusive Framework on tax policy and gender equality.
Climate change
The Ministers are committed to tackling climate change and protecting the environment. The Communiqué notes that the policy mix to achieve carbon neutrality should include a full range of fiscal, market and regulatory mechanisms. These could include carbon pricing mechanisms and incentives; phasing out inefficient fossil fuel subsidies in the medium term; and targeted support for low income and vulnerable groups. Further technical work is required on the macroeconomic and fiscal impact of climate change policies.
Financial Action Task Force
The meeting confirmed its support for the Financial Action Task Force (FATF) and emphasised that effective implementation of the FATF Standards is important in ensuring confidence in financial markets and supporting a sustainable recovery. The Ministers reaffirmed their commitment to implement the FATF standards on virtual assets and virtual assets service providers; and are committed to implementing the FATF standards on beneficial ownership. They welcomed the focus by the FATF on additional risks and opportunities for combating financial crime arising from the digital transformation.
Other
The Communiqué also dealt with other aspects of fighting the pandemic and supporting the financial recovery. The Ministers noted that the pandemic has widened inequality and hit the most financially vulnerable groups, in particular women, youth, and Micro, Small, and Medium Enterprises (MSMEs). The meeting therefore looked forward to a global financial inclusion framework that could use the benefits of digitalisation to achieve an inclusive economy.
