Turkish Deputy Prime Minister Ali Babacan said, "What is most needed nowadays is forward-looking, long term policies and adequate action."
Speaking at G-20 finance ministers meeting in Moscow, Babacan pointed out that 5 years after the emergence of global economic crisis, weaknesses still persisted and there were serious sources of risk.
"It is important to send strong signals to the markets about our medium to long-term fiscal plans that imply a more sustainable debt path. St Petersburg Fiscal Strategy will be a very important step to demonstrate stronger fiscal positions of advanced G-20 countries," said Babacan.
He added that there was also a need for stronger ownership of such policies by the financial sector, corporates and the citizens at large, which would enhance predictability and confidence.
"Moreover, “decisive implementation” will be the key concept to follow," he emphasized.
Finally he said that fiscal strategies needed to have a certain degree of flexibility to tolerate swings in the economic conjuncture, and added, "However, overemphasis on flexibility might trigger a sense of unpredictability and a possibility of backtracking from previous commitments. This could undermine the credibility of medium-term fiscal strategies."
