Italy – World Economy: 1
Italy has been awarded a score of +1 for its efforts to promote its world economy priorities at both the G8 and G20 summits. Although none of its objectives were discussed at the G8 Muskoka Summit itself, in light of its statement quoted above it is clear that Italy always intended to focus its efforts in this area on the G20 meetings in Toronto. The official communiqué released by the G20 reflected all three Italian priorities listed above.
With regards to the review and reform of major financial institutions, the G20 outlined several concrete measures that will be taken to this end by member states. The G20 strongly endorsed “voice reforms” in the World Bank and expressed its “resolve” to proceed with the ratification of the 2008 IMF Quota and Voice Reforms. The communiqué also called for the “acceleration” of the work needed to ensure that the IMF can carry out this “quota reform” by the time of the next summit in Seoul.
On the issue of strengthening global financial regulation, the G20 “pledged” to “transition to new standards” within the timeframe agreed upon at the Washington, London, and Pittsburgh Summits. The communiqué also called for the implementation of a “strong regulatory framework” by the time of the Seoul Summit, with a view to have these measures implemented by the end of 2012.
Finally, with regards to sustaining the global recovery, the G20 agreed with the Italian assessment that it is still a “fragile” situation. As such, the communiqué outlined a series of “concerted actions to sustain the recovery,” which are to be taken in a manner “differentiated and tailored” to national circumstances. These actions formed part of a two-track plan, wherein “advanced countries” will undertake fiscal consolidation measures whereas “surplus economies” will enact reforms to “reduce their reliance on external demand.” The G20 also set a timeline for the implementation of these measures, which was set as 2011 for advanced economies in particular.