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About four decades ago the five largest economies in the then western world, the US, Japan, Germany, France and the United Kingdom, co-signed at the New York Hotel of the same name Agreement of the «Plaza». The basic idea was that the dollar was very strong, American exports had become expensive, resulting in the USA have a major trade deficit, while the international climate tended to become toxic. Can the 1985 conciliation be repeated today in order to solve the many new imbalances that have been created? The reality shows that this is impossible.
The main work text of this year's assembly of finance ministers of the seven most developed economies on the planet featured some of the new imbalances, modern problems. It pointed out that the China For many years low consumption and high savings, Europe low investment and weak productivity, while the US economy is characterised by high government deficits. We are talking about an environment that the US spends more than they produce, China produces more than it consumes and Europe... thinks. These deviations according to the G7 text are considered responsible for excessive surpluses or large deficits in the trade balance of countries, fueling protectionism and trade wars.
Assuming that average ends are the situation and given that China's problem is that it is doing very well while the US has the power to hide their own weaknesses, the question is what does China do? European Union.
A first taste of the agenda of this week's informal session in Cyprus does not create much expectations for major changes. The ones that should have been done... yesterday.
A flash of hope that something changed we had in the week with the leak of the plan about greater relaxation of the rules on mergers of companies promoted for decades in order to create companies with size capable of dealing with American and Chinese giants. It took us seven years from the famous Brussels blockage in the merger of the railway activities of German Siemens and French Alstom aimed at creating «Airbus train», in order to address the Chinese CRRC, to understand that the biggest problem lies within the European walls.
