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People walk without wearing masks as Italy lifts mandatory masks outdoors thanks to a decline in the coronavirus disease (COVID-19) cases and hospitalisations, in Rome, Italy, June 28, 2021. REUTERS/Guglielmo Mangiapane - 

An upsurge in new coronavirus variants and poor access to vaccines in developing countries threaten the global economic recovery, finance ministers of the world's 20 largest economies warned on Saturday (Jul 10).

The G20 gathering in the Italian city of Venice was the ministers' first face-to-face meeting since the start of the pandemic. Decisions include the endorsement of new rules aimed at stopping multinationals shifting profits to low-tax havens.That paves the way for G20 leaders to finalise a new global minimum corporate tax rate of 15 per cent at a Rome summit in October, a move that could recoup hundreds of billions of dollars for public treasuries straining under the COVID-19 crisis.

A final communique said the global economic outlook had improved since G20 talks in April thanks to the rollout of vaccines and economic support packages, but acknowledged its fragility in the face of variants like the fast-spreading Delta.

"The recovery is characterised by great divergences across and within countries and remains exposed to downside risks, in particular the spread of new variants of the COVID-19 virus and different paces of vaccination," it read.

While G20 nations promised to use all policy tools to combat COVID-19, the Italian hosts of the meeting said there was also agreement to avoid imposing new restrictions on people.

"We all agree we should avoid introducing again any restriction on the movement of citizens and the way of life of people," said Italian Economy Minister Daniele Franco, whose country holds the rotating G20 presidency through to December.

The communique, while stressing support for "equitable global sharing" of vaccines, did not propose concrete measures, merely acknowledging a recommendation for US$50 billion in new vaccine financing by the International Monetary Fund, World Bank, World Health Organization and World Trade Organization.

Differences in vaccination levels between the world's rich and poor remain vast. WHO Director-General Tedros Adhanom Ghebreyesus has called the divergence a "moral outrage" that also undermines wider efforts to tame the spread of the virus.

Brandon Locke, of the public health non-profit group ONE Campaign, decried what he described as the G20's inaction, calling it "a lose-lose situation for everyone".

"Not only will it cost lives in poorer countries, it increases the risk of new variants that will wreak havoc in richer ones," he said.

Italy said the G20 would return to the issue of vaccine funding for poor countries ahead of a Rome summit in October and that new variants was an area that needed to be looked at. It did not give further details.

"We must agree on a process for everyone on the planet to be able to access vaccines. If we don't, the IMF predicts that the global economy will lose US$9 trillion," religious development organisation Jubilee USA Network said.

It was referring to an IMF forecast that international cooperation on COVID-19 vaccines could speed world economic recovery and add US$9 trillion to global income by 2025//CNA