On the anniversary of the Russian attack on Ukraine, Federal Finance Minister Christian Lindner (FDP) does not want any doubts to arise. At the meeting of finance ministers of the 20 largest industrialized and emerging countries in southern India’s Bangalore, the wording for the final document is currently being debated. The day before, reports had been circulating that the Indian G-20 presidency would rather have the war in Ukraine immortalized as a “crisis”. But now Lindner is sitting on the flower-decorated stage in the press center and says: “For a year now we have been witnessing this terrible war in Ukraine, which started from Russia. Especially on a day like today and on an occasion like the G-20 meeting we are absolutely clear: this is a war and the cause of this war is Russia and Vladimir Putin.” That must, says Lindner, “be clearly expressed” at this meeting of finance ministers. Lindner’s French counterpart, Bruno Le Maire, also said: “We will reject any regression to the Bali Declaration.” France will not support a declaration that falls short of the Bali wording.
A few hours earlier, India had again abstained from voting on a new UN resolution on the Ukraine war. The resolution calls on Russia to immediately end attacks and withdraw from Ukraine; 141 states voted yes. Russia, Belarus, Eritrea, Mali, Nicaragua, North Korea and Syria voted no, with 32 countries abstaining.
However, it is not a new development that Ukraine’s supporters would like India to take a tougher stance, but the country refuses – and instead, for example, is even buying more Russian oil than ever before. The fact that, with this in mind, the G20 should now also fall behind the stand they had agreed on last year in condemning the war – that is obviously going too far for most of the others.
“It would not be acceptable for Germany if we fell behind the language of the G-20 meeting in Bali,” said Lindner on Friday afternoon, referring to the final document from the previous year, when Indonesia still held the G-20 presidency. Germany and other countries have also expressed this. Lindner’s impression after the first round of talks in Bangalore: He has no doubt that the Indian presidency will also stick to the “language of Bali”. He pointed out that Brazil, for example, had condemned the Russian attack “more clearly than in the past” as a war that violated international law. That’s why Lindner considers it not only “politically necessary” that the current wording should remain in spite of Indian advances – but also “highly probable”.
“Recession fears are increasingly receding into the background.”
In addition to the Ukraine war, the global economy and the indebtedness of poor countries have shaped the meeting in Bangalore. Bundesbank President Joachim Nagel – the heads of the central banks are also there – spoke on Friday on the stage next to Lindner that the global economy was “on a cautious course of expansion”. “Recession fears are increasingly receding into the background,” said Nagel. However, the high inflation rates continued to have a negative impact. That’s why it’s important “that monetary policy continues to tighten the reins.” According to Nagel, it would be a “cardinal error” to ease the monetary tightening too early. “This must not happen.” With a view to the euro area, he made it clear that he was expecting another “robust rate hike” by the European Central Bank in March. He did not rule out further interest rate increases.
Lindner said on the global economic situation that there is more resilience than expected; Last year the concerns were even greater. For the non-developed countries, however, there is no all-clear. According to Lindner, Germany also wants to continue to push ahead with a set of rules for dealing with over-indebted developing countries. For Ghana, for example, a creditors’ committee is necessary, in which Germany will participate. But other countries would also have to take responsibility, above all China.
Lindner will also address an upcoming personnel decision on Friday. The German minister calls the fact that US President Joe Biden proposed former Mastercard boss Ajay Banga as the new head of the World Bank the day before “remarkable and worth considering”. Shortly before, he had explained that the necessary digital and “green” transformation of the world required private capital in addition to state capital. Banga, as a “personality from the private sector”, fits well into the picture from Lindner’s point of view. In addition, with his personal biography – Banga was born in India – he could stand for a “close alliance” between the developed industrial nations, the emerging countries and the developing countries.