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Events 18 May 2017

Why does the world need the B20?

The B20 -a forum made up by companies from G20 countries– plays a key role as a liaison between governments and the economy. It is “an essential link between the real economy and the authorities that have regulatory powers over that economy,” says José Manuel González-Páramo, Executive Board Director of BBVA. Companies also act as drivers of economic growth and inclusion. For this reason, the B20 “is crucial at this point in time.”

Voices of B20, José Manuel González-Páramo

The B20 met in early may in Berlin, to debate about new sustainable growth models and gather in a document its 20 business and economic recommendations for G20 leaders. But, how can the G20 contribute to a more sustainable economic growth? José Manuel González-Páramo , who co-chairs the B20 Financing Growth & Infrastructure Taskforce, believes that the key lies in regulation. “We need to review current regulations to make it more consistent,” in order to ensure that the financial system helps to promote economic growth. Also, in an interview he emphasizes the need to “improve the financial infrastructure for small and medium sized enterprises.” In third place, he indicates, it is necessary to promote digital regulation to expand the sources of funding that SMEs have to increase their investment and activity.”

“We need to do whatever is possible to make sure that we can offer access to financial systems to the highest possible number of people” he explains. And he warns that “this also entails certain obligations,” such as increasing the emphasis on financial education and consumer protection, especially for families and SMEs.

At the end of his address in the panel entitled ‘Resilience: Are We Prepared enough for Future Crises?’, BBVA Executive Board Director praised the efforts made by the companies comprising the B20 to come to an agreement and summarize their priorities in a single document: “We want the world to prosper, to be more inclusive; we want globalization to work for those that need cooperation. It is not surprising that G20 countries are capable of agreeing on many things,” he assures in this interview.

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