G20 china_web

The EU is pursuing a
virtuous triangle of
investment, structural
reforms and responsible
public finances
Leader's view
3 rd
Summit
2014
Elected
If the G20 leaders' meeting at Hangzhou, China,
on 4–5 September 2016 is to be remembered as a
turning point rather than just one more highlevel
gathering, we will need to show leadership,
join forces and deliver practical solutions to the
pressing challenges of prosperity and security across
our planet.
The need for global political coordination has
never been so compelling. In an interdependent world,
our prosperity and security are increasingly a shared
responsibility. For its part, the European Union will
continue to work for an economy that is governed by
rules, increasingly transparent and as fair as possible.
Our ultimate goal is clear: that our children and
grandchildren should enjoy the free and open society
that we have created, on a planet that we treat with
respect and care because it is the only one we have.
Delivering a strategy
How can the G20 summit contribute to this agenda?
First, it needs to deliver a comprehensive and credible
strategy for sustainable growth, which spells out the
macroeconomic policies and structural reforms that are
needed. We need to meet our Brisbane commitment to
enhance global growth by two per cent. Collectively we
have agreed on the growth strategies that will help us to
reach this target. Now we should implement them.
That is why the EU is pursuing a virtuous triangle of
investment, structural reforms and responsible public
finances. Our strategy is working and we will stay the
course. In its first year, our Investment Plan for Europe
is already giving 150,000 small businesses better access
to finance. It has mobilised more than €107 billion in
extra investment and reached 26 of our member states.
Equally important, it is creating new jobs. This opens
up a window of opportunity for national reforms that
are more ambitious.
Second, we must use all means at our disposal to
tackle tax avoidance, working in close cooperation
with the Organisation for Economic Co-operation and
Development (OECD). The EU’s message is clear: all
companies must pay their fair share. This is first and
foremost a question of fairness. It has urgent practical
implications as well. We cannot let down our schools,
hospitals and public services that need this money.
The European Commission has proposed new
measures for a fair, efficient and transparent corporate
Jean-Claude Juncker
President, European Commission
tax system. We are obliging multinational companies to
publish information on where they make their profits
and putting in place new measures against tax evasion,
tax avoidance and money laundering. We should now
implement the OECD’s principles on the Automatic
Exchange of Information and Base Erosion and Profit
Shifting. And, as the Panama Papers have confirmed,
we must shed more light on tax havens around the
world. There must be nowhere to hide for those who try
to shirk their responsibility to society.
Third, the G20 needs to help deliver a response to
the global refugee crisis. The European Commission has
put in place a European response to react immediately
to the crisis: saving lives at sea, providing urgent
humanitarian assistance, supporting countries under
the most strain with financial and technical assistance,
working with our neighbours to stem the flow of
irregular migrants and ensuring solidarity between our
member states. A country’s location on the map should
not alone dictate its share of the work.
Investment and unification
Global migration is here to stay. More than 65 million
people in our world are displaced. We need to address
the root causes of this situation. The only viable
solutions are global, and they demand concerted
action at all levels of government.
Beyond our work to bring peace and stability to
regions of conflict, we must invest in the most fragile
countries and give their young people a future in their
own country. That is why the European Union launched
the Emergency Trust Fund for Africa, using €1.8 billion
of our budget and the Trust Fund for Syria with an
EU contribution of €500 million. We will also shortly
launch a new investment plan for our development
partners. It will use public money to mobilise private
finance for infrastructure and small and medium-sized
enterprises and provide targeted technical assistance.
At a time of insecurity, economic uncertainty and
social discontent – when millions of people in all of
our countries are questioning the value of a global
and interconnected world and too few are sharing
the benefits of the global economy – the G20 must
demonstrate its capacity to stay united against all forms
of radicalisation and be able to deliver prosperity to all
parts of society. The commitments we have made as the
G20 are clear. Now we must implement them. G20
G7G20.com September 2016 • G20 China: The Hangzhou Summit 29