G20 meeting Held in Hangzhou
Finance ministers and central bankers from the Group of Twenty (G20) nations have met in Moscow for their third gathering this year.
They are now gearing up for a G20 summit at the beginning of September in Saint-Petersburg.
For the two-day meeting on Friday and Saturday, tax evasion and faltering global economy have topped the agenda.
G20 BACKS TAX PLAN
On Friday, the G20 group backed a global taxation reform that takes aim at the loopholes used by multinational firms.
The group has endorsed a tax action plan drawn up by the Organization for Economic Co-operation and Development (OECD).
The plan is one of the major 'deliverables' that will go to the St. Petersburg summit hosted by President Vladimir Putin.
Russian Finance Minister Anton Siluanov says a multilateral agreement will be "more efficient" than simply upgrading bilateral agreements.
The action plan has offered 15 measures to change the global taxation system.
And the OECD Secretary General Angel Gurria says the plan will not set unified tax rates.
Large budget deficits and low tax payments by major global companies have sparked public anger in Europe recently.
Google, Amazon and Starbucks have been accused of using legal, but controversial, methods of booking profits in low-tax countries.
Business groups welcomed the international approach being taken by the G20, saying unilateral action could hinder cross border trade and investment.
But they advised caution in changing the current rules.
The OECD has two years to come up with specific measures that can be adopted internationally.
G20 PROMISES CAREFUL POLICY SHIFT
The G20 group has also pledged on Friday to shift policy carefully as they seek a path to recovery.
A final draft communique to boost jobs and growth, while rebalancing global demand and debt, would be readied for their leaders in September.
A paper by International Monetary Fund warns that financial market turmoil could deepen unless policymakers were careful.
The remarks came as global financial markets became volatile after the U.S. Federal Reserve Chairman Ben Bernanke says a possible tapering of the central bank's ultraeasy monetary policy.
Russian Finance Minister Anton Siluanov stresses that monetary policies must be "understandable and foreseeable."
Meanwhile, G20 labor ministers held a joint session with finance ministers, putting the jobs crisis in Europe at the center of the debate.
The proposal came against the backdrop of high unemployment rate in Greece and Spain, where nearly half the population is jobless.
Washington is putting increasing pressure on Europe to do more to foster growth. Germany, in contrast, is seeking internationally agreed debt reduction goals.