The G7 financial leaders have just begun a teleconference today, Tuesday, starting at 12:00 GMT, to assess the situation and coordinate their responses to the economic impact of the coronavirus crisis.
** Today’s call will reiterate the G7 leaders’ commitment to monitor developments and take action as needed, but is unlikely to result in any concrete coordinated policy response, nor is the EU finance minsters’ teleconference scheduled for 13:00 GMT tomorrow, on Wednesday. **
** Sources involved in the preparation for the discussions say the financial leaders will use this call as an opportunity to take stock of the situation – the first stage to a potential coordinated response – but not much more at this time. **
** At this stage, from what we understand any financial policy response if and as needed to the coronavirus fallout will come individually from G7 and EU countries as they see fit. As the situation develops, cuts will be coming, and these actions may add up to something resembling a global or EU-wide response, but that will be through collaboration and not coordinated intervention. **
** In the words of one G7 official, “We are in a health crisis. Coordinating means we share information, good practices, alert each other, take care of spillovers, and frame it all in a wider context.” **