G20 leaders issue pledge to do 'whatever it takes' on coronavirus
G20 leaders have committed to do “whatever it takes” to minimise the social and economic damage of the coronavirus pandemic, in a largely unspecific and uncontroversial joint communique issued after a video conference call.
In a two-hour meeting the leaders agreed to assess gaps in pandemic preparedness and increase funding for research and development in vaccines and medicines, an area in which the G20 has shown an interest in the past.
A call by the International Monetary Fund (IMF) for a doubling of its funding to $2tn was not addressed specifically in the communique. The statement said G20 members had undertaken a $5tn stimulus through targeted fiscal policy and insurance schemes, and members would look to increase funding to multilateral bodies as required. Central bank governors were urged to draw up an action plan in conjunction with finance ministers.
G20 leaders, whose countries account for 80% of the world’s GDP, have been criticised for failing to produce a quick response to the pandemic of the quality of that in the aftermath of the 2008 financial crash.
Their summit was due to be followed by a virtual meeting of EU leaders, whose countries were rebuked on Thursday morning by the European commission president, Ursula von der Leyen, for “looking out for themselves” during the early phases of the crisis.
Taking an unusually critical tone, von der Leyen said the story of the past few weeks had been partly a painful one. “When Europe really needed an all-for-one spirit, too many initially gave an only-for-me response.”
She was referring to export bans on critical medical goods, as well as closures of borders, which have created delays in moving food and healthcare supplies around the bloc, especially in central Europe.
An internal report by von der Leyen’s team lamented that transport had been paralysed by border closures, leading to lorries being stuck in queues at EU internal borders for 24 hours. So far only three countries have followed the commission’s advice to create “green lanes” with minimal checks to speed up traffic. An EU statement is due later on Thursday.
The G20 communique said members were united in their response and they would use all available policy tools to minimise the economic and social damage, restore global growth, maintain market stability and strengthen resilience.
In an assertion of the relevance of multilateralism, the communique said the pandemic was “a powerful reminder of our interconnectedness and vulnerabilities”, and the virus “respects no borders”.
China’s president, Xi Jinping, locked in a growing propaganda battle with the US over the cause of the outbreak, focused in his remarks on US trade barriers rather than a domestic Chinese fiscal stimulus as the best route to growth. He urged G20 members to boost the world economy by cutting tariffs, removing barriers and facilitating the unfettered flow of trade.
China’s economy ground to a halt in February as authorities shut factories and imposed drastic lockdowns. Since
then it has started to recover, but that can only continue if western markets also bounce back.
The communique committed to ensuring cross-border flow of vital medical supplies, agricultural products and other goods and services. Some countries have been withholding export permits of medicines or masks.
Britain, in its main contribution to the discussions, offered an extra £210m to speed up vaccine development. The extra funding makes the UK the largest single contributor to the international coalition searching for a vaccine.
In the only sideways reference to the row between China and the US, the G20 statement said: “We stress the importance of responsible communication to the public during this global health crisis.”
On Wednesday G7 foreign ministers were unable to agree a joint communique after the US insisted Covid-19 be described as the Wuhan virus, in a reference to the city where it originated. On the other side, China has been trying to claim that US soldiers may have planted the virus there.
The G20 communique reflected concern about the impact of the disease on health networks in poor countries. “We are gravely concerned with the serious risks posed to all countries, particularly developing and least developed countries, and notably in Africa and small island states,” it said.
Before the EU summit, France, Italy, Spain and six other member states called for “a common debt instrument” – in other words, a eurozone bond – to raise funds for all member states. But Germany, the Netherlands and Austria oppose any shared debt.