EU looks to in­crease col­lab­o­ra­tion with Bei­jing

China Daily (USA) - - ACROSS AMERICAS - By WANG YANFEI in Hangzhou wangyan­fei@chi­nadaily.com.cn

China and the Euro­pean Union should fo­cus on struc­tural re­forms, growth-friendly fis­cal poli­cies and more col­lab­o­ra­tion un­der the G20 frame­work as they look to achieve long-term growth, ac­cord­ing to a se­nior of­fi­cial of the Euro­pean Com­mis­sion.

Marco Buti, di­rec­tor-gen­eral for eco­nomic and fi­nan­cial af­fairs for the Euro­pean Com­mis­sion, shared his in­sights re­gard­ing how China and the EU could lift growth even as they face eco­nomic head­winds, in an in­ter­view ahead of the G20 Sum­mit in Hangzhou.

“The G20 Sum­mit comes at a cru­cial mo­ment when the global econ­omy’ s re­vival is be­ing slowed, and nei­ther ad­vanced nor de­vel­op­ing economies can ex­clude them­selves from down­ward pres­sure,” he said.

The an­nual growth fore­cast for the world econ­omy has been low­ered by the In­ter­na­tional Mon­e­tary Fund to 3.1 per­cent, which — along­side Bri­tain’s de­ci­sion to leave the EU — adds fur­ther un­cer­tainty both medium- and longterm, Buti said.

AsChina strives to switch its eco­nomic model from ex­port­driven to con­sump­tion driven, Europe has been strug­gling to rein­vig­o­rate its strength amid signs that the bloc’s re­cov­ery re­mains weak.

All this points to the need to turn to fis­cal poli­cies that could help drive in­no­va­tion and in­fra­struc­ture in­vest­ment when mon­e­tary poli­cies are found to be less ef­fec­tive, ac­cord­ing to Buti.

“These sugges­tions are in line with what the G20 has been pro­mot­ing” un­der China’s lead­er­ship this year, he said, re­fer­ring to G20 mem­bers’ com­mit­ment to use all avail­able poli­cies to strengthen growth, pro­mote in­fra­struc­ture in­vest­ment and bet­ter share ex­per­tise.

Buti said he ex­pected both China and the EU to take op­por­tu­ni­ties pro­vided by the sum­mit to en­hance col­lab­o­ra­tion and knowl­edge shar­ing, adding that both key G20 mem­bers have at­tracted pri­vate in­vest­ment flows to in­fra­struc­ture con­struc­tion as well as to the devel­op­ment of small and medium-sized busi­nesses.

There has been much, in terms of ex­pe­ri­ence, that the two par­ties could share and learn­fromeach other, Buti said.

In the mean­time, both are able to en­hance bi­lat­eral col­lab­o­ra­tion on cross-bor­der ini­tia­tives such as the Asian In­fra­struc­ture In­vest­ment Bank and the Belt and Road Ini­tia­tive, he added.

The G20 Sum­mit comes at a cru­cial mo­ment when the global econ­omy’s re­vival is be­ing slowed.” Marco Buti, di­rec­tor-gen­eral for eco­nomic and fi­nan­cial af­fairs for the Euro­pean Com­mis­sion

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