On 19–20 March 2018, the G20 finance ministers and central bank governors gathered in Buenos Aires for their first meeting under Argentina’s presidency. Germany’s new finance minister Olaf Scholz was also in attendance. Discussions addressed a wide range of key issues, focusing in particular on the shape of the global economy, financial market regulation, international tax policy and the fight against terrorist financing.

Olaf Scholz, the former mayor of Hamburg, has taken office as Germany’s Federal Minister of Finance. Bundestag members Bettina Hagedorn and Christine Lambrecht will be providing him with key support as Parliamentary State Secretaries.

In a joint paper, German and Italian finance ministers Peter Altmaier and Pier Carlo Padoan set out their ideas for redesigning the EU budget, taking into account the existing financial possibilities. Their proposals focus on a stronger promotion of structural reforms and European public goods, from which all EU citizens can benefit.

In recent years, EU state aid control has increasingly set its sights on tax policy measures. In this process, the European Commission and the European Court of Justice tend to apply a very broad definition of state aid. This results in considerable legal uncertainty regarding the classification of national measures and creates problems for companies and member states.

On 17 January 2018, Minister Peter Altmaier welcomed Portuguese Finance Minister Mário Centeno, the new president of the Eurogroup, to the Finance Ministry in Berlin. It was Minister Centeno’s first official foreign trip in his capacity as Eurogroup president, and he took the opportunity to participate in the “Finance Ministry in Dialogue” event series. Minister Altmaier invited Minister Centeno to visit Berlin after he was elected as Eurogroup president in December 2017.

The outcomes of Germany’s G20 presidency in the finance track demonstrate the benefits of international cooperation in challenging times, writes chief economist Ludger Schuknecht. With a central focus on the resilience of the G20 economies, digitalisation in the financial sector and the Compact with Africa, Germany's G20 presidency made vital contributions towards the improvement of global economic and financial governance.

From 1 December 2016 to 30 November 2017, Germany held the presidency of the G20 and passed it to Argentina on 1 December 2017. In the finance track one of the major accomplishments was the launching of the G20 Compact with Africa. Significant advances were achieved in the areas of economic resilience, international financial architecture, international tax policy cooperation, financial market regulation, cybersecurity and remittances.

The 12th meeting of ASEM Customs Directors-General took place in Berlin on 16/17 October 2017. The meeting brought together the Customs Directors-General from the European and Asian member states of ASEM along with representatives from the European Commission. The World Customs Organization also attended as an observer.

On 30 September 2017, the first automatic exchanges of financial account information will begin between Germany and 49 other countries and jurisdictions using the OECD’s Common Reporting Standard (CRS). The involvement of so many countries and jurisdictions means that over 2,000 bilateral exchange relationships have already been put into place around the world.

On 26 September 2017 renowed international experts from the IMF, European Commission, central banks and research institutes came together with representatives of the German government at the Federal Finance Ministry to discuss the challenges to European integration and the question of how to foster a sound and prosperours Union.

The International Monetary Fund (IMF) concluded this year’s Article IV consultation with Germany on 28 June 2017. The IMF’s projections confirm that Germany’s public budgets and economy are in good shape and that the latter is underpinned by prudent economic policies and a well developed social safety net.

The G20 conference “G20 Africa Partnership – Investing in a Common Future” has made an important contribution to implementing the G20 Africa Partnership, helping to enhance cooperation between the G20 and African countries.

On 28 June 2017 the federal cabinet adopted the government draft for the 2018 federal budget and the financial plan to 2021. No new debt is envisaged for any of the years covered by the financial plan. Federal expenditure in the years up to 2021 is set to rise at a moderate pace, from €329.1bn in 2017 to a projected €356.8bn in 2021. In particular, federal spending in forward-looking, growth-enhancing policy areas will be further increased.

On 7 June 2017 Finance Minister Schäuble signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS in a joint signing ceremony in Paris. The Multilateral Instrument as the Convention is called in brief was concluded by 100 jurisdictions and is a major step forward in the fight against tax avoidance‎. Read the minister’s statement on this occasion in our dedicated speeches section.

Germany’s current account surplus has been garnering criticism for years. Taking on this criticism coming from home and abroad the Ministry of Finance and the Ministry of Economic Affairs published a joint position paper that explains the reasons behind Germany’s current account surplus and outlines the fiscal and economic policy options.