Second Vice-President and Minister of Economic Affairs and Digital Transformation, Nadia Calvino, along with her counterparts from Germany, France and Italy, who represent the four largest economies in the Eurozone, signed a letter hours before the start of the G7 Finance Ministers Summit, outlining their position in favor of a new international tax regime. More suitable for the twenty-first century, including a global minimum corporate tax.
The message was posted by Watchman It adds pressure for a common position among the richer countries that will serve as the basis for a subsequent agreement within the Organization for Cooperation and Development (OECD) and the G-20. In this sense, the four signatory ministers stress that “the time has come to reach an agreement”, noting that the introduction of a fairer and more efficient international tax system was already a priority before the current economic crisis and will be even more necessary. to get out of it.
This message was released ahead of the start of the G7 finance ministers summit, which includes Canada, the United States, Japan, France, Germany, Italy and the United Kingdom, as well as the European Union attending. The meeting will be held in London on Friday and Saturday with the aim of bringing positions closer to laying the foundations for the new international tax system, which includes setting a global minimum tax for large corporations.
The meeting, which will mark Janet Yellen’s first international assignment as US Treasury Secretary and the first face-to-face meeting of G7 finance ministers since the pandemic, will be chaired by Rishi Sunak. UK Chancellor of the Exchequer and Head of the Treasury, as well as Andrew Bailey, Governor of the Bank of England.
“It is great to finally be able to have a face-to-face meeting with Secretary Yellen ahead of the G7 financial meeting that begins tomorrow (today) in London. We will continue to work with our global partners to ensure a sustainable and environmentally friendly environment,” Sunak said after meeting his US counterpart on Thursday.
The British presidency has identified as financial priorities for the 2021 program to protect employment and support global economic recovery, as well as work to reach a global solution to the financial challenges created by the digitization of the economy, which helps economies achieve them. Its net zero emission targets and provides needed support to the world’s most vulnerable countries.
Next week’s meeting of G7 finance ministers will follow the G7 leaders’ summit, which will meet from June 11 to 13.
In this way, despite the fact that the G7 does not have an official role in the process of discussing new international taxes, agreement within this group will be a powerful impetus for an agreement to be reached in the ongoing formal negotiations. This regard in the G20 and in the OECD.
In this sense, the United States has lowered its aspirations for a minimum corporate tax globally, lowering it from 21% to an effective rate of 15% in order to broaden the consensus in this regard.