G20 Finance Ministers Talk Growth, Taxes And Russia

G20 members remain confident to boost economic growth as finance ministers and central bankers of the Group of 20 leading economies meet in Cairns, Australia. They are also set to back a global tax avoidance plan.

Opening the meeting on Saturday, the third in a series of four prior to the G20 leaders' summit in Brisbane in mid-November, Australian Treasurer Joe Hockey told the members they had the opportunity to change the destiny of the global economy.



"We are determined to make the world a better place, to grow the global economy, to create more and better paying jobs, to build the infrastructure to ensure children get better quality water, education and healthcare," Hockey said.



However, this ambitious message was soon met with disagreement among delegates.



G20 economic leaders have set a target of raising gross domestic product by at least two per cent over the next five years. However, that goal has become more complicated as members from China to Japan to Russia have all stumbled in recent months because their debt was still too high to allow for increased spending.



Germany, by contrast, remains strong in the eurozone and continues to endorse austerity policies.



"We will not agree on short-sighted stimuli," a German delegate reiterated on Saturday, according to Reuters news agency.



OECD secretary-general Angel Gurria, however, stressed the need for difficult reforms to spur economic activity. "Why would you reduce the ambition when precisely what you need is the growth," he told the newspaper The Australian.



G20 supports OECD tax strategy



Meanwhile, OECD chief Angel Gurria handed the G20 recommendations on the biggest changes to international tax rules in more than a century in a bid to tackle corporate tax strategies that are costing countries billions.



The project "is about tackling aggressive practices which erode the tax base and artificially shift corporate profits to low- or no-tax jurisdictions," Gurria said.



The plan seeks to close international loopholes used by multinational firms to avoid paying large amounts of tax.



"The whole world needs to go after tax cheats," Australian Treasurer Hockey said, in support of the proposal.



Russia not shut out



The outlook for growth has not been helped by conflicts, from fighting in the Middle East to the strife between Russia and Ukraine.



Russia had risked being shut out of the G20 in the standoff with Europe, the US and countries like Australia since it annexed a part of Ukraine earlier this year.



At the start of the meeting, the finance ministers confirmed that Russia was stilll expected to attend the Brisbane summit in November.



"The door will always remain open for communication in order to address some of the geopolitical tensions involving Russia," Hockey added.



jng/kms (AP, AFP, Reuters, dpa)