From 13 to 20 April 2022, the World Bank and the International Monetary Fund (IMF) held virtually the annual Spring Meetings of their Global Parliamentary Forum.
PAM was represented by Hon. Centemero (Italy), Co-Chair of the PAM Economic Panel, and by Sen. Cernic (Romania).
On Tuesday, Hon. Centemero addressed the panel on “Debt Management: Transparency and creativity for equitable growth”, which was attended, among others, by the World Bank Senior Vice President and Chief Economist, Prof. Carmen Reinhart, and by Ceyla Pazarbasioglu, Director at the IMF. Hon Centemero first recalled the worrisome public debt level of some MENA and Southern European countries, which has dramatically increased after the Pandemic. He explained that “excessive debt levels can hinder sustainable development plans – as national fiscal space is reduced – thus resulting in significant delays in green transition processes”. In addition, Hon. Centemero stressed the importance for recovery plans and public investments to be focused on growth as the only way to sustain higher debt levels in the long run.
On Wednesday, Sen. Cernic addressed the session on “Climate Finance and Smart Infrastructure for a Greener and More Inclusive Recovery”, attended by Dr. Papathanasiou, Global Director at the World Bank, and by Dr. Ananthakrishnan Prasad, Deputy Director at the IMF. Sen. Cernic started his intervention by outlining of the current regional environmental situation: “In our regions, we are at a turning point: temperatures are rising 20% faster than the global average; biodiversity, food security, economy at large, tourism, and coastal areas are already under threat”. Successively, he focused on the complex interconnections between Climate Change and finance. “Our economies will have to go through a systemic transition. This transition requires capital, and it has become imperative to connect green transition projects with the capital markets”. “For this reason”, he continued, “PAM is currently developing its ‘Start-up Market Project’ to facilitate SMEs and start-ups access to finance and improve their contribution to a greater financial integration in the region”.
During the Q&A session, both interventions contributed to a fruitful debate on the geo-economic implications of the Russian aggression against Ukraine, its impacts on food and energy security, and on how the IMF and the World Bank – which cover the most urgent financial needs of the Ukrainian state – can contribute to fostering the green transition process under the current circumstances.
With its participation at this event, PAM reaffirms its close partnership with the World Bank and the IMF and its commitments towards creating a solid science-policy interface for a resilient socio-economic recovery.
In their concluding remarks, both Hon. Centemero and Sen. Cernic recalled the upcoming “Euro-Mediterranean and Gulf Economic Forum” that PAM will organize tentatively in November 2022 in Morocco.//