The G-20 approves the minimum tax of 15%

The G-20 leaders finally sealed an agreement this Saturday in Rome for the implementation of the 15% global minimum tax on multinationals. After four years of work, after the G-20 itself launched the assignment to the organization of developed countries OECD, the work at the end and the summit of leaders in Rome have given it “broad and transversal support” in the plenary meeting. this Saturday, according to the Italian presidency of the forum. “We have reached a historic agreement for a fairer and more efficient international tax system,” stressed the Italian Prime Minister, Mario Draghi, host of the Rome summit.

At the meeting this Saturday, focused on health and the economy, the president of the United States himself, Joe Biden, lent its support to the initiative, which has reached the G-20 endorsed by 136 countries after the work of the OECD. “Here in the G-20, leaders representing 80% of world GDP – both allies and competitors – have clearly expressed their support for a global minimum taxation,” Biden later said on his twitter account. “This is more than a fair tax deal. It is diplomacy that is reshaping our global economy and bringing benefits to our people,” he added. The support provided from the beginning by Biden to the work of the OECD for a global tax system has been key so that this G-20 has been able to end up assuming an objective that its predecessor always opposed, Donald Trump.

Here at the G20, leaders representing 80% of the world’s GDP – allies and competitors alike – made clear their support for a strong global minimum tax. This is more than just a tax deal – it’s diplomacy reshaping our global economy and delivering for our people.

President Biden (@POTUS) October 30, 2021

Voices of support for the initiative were also heard in the plenary of the G-20 this Saturday by Brazil, France and Korea. The Spanish President, Pedro Sanchez, for his part, he expressed the desire that the agreement reach the laws of the countries “as soon as possible”, as explained by the economic vice president herself, Nadia Calvin, to the media when reporting on the progress being made at a summit that will end at noon this Sunday. According to sources in the Spanish delegation, the agreement that will incorporate the final communiqué of this G-20 summit will urge countries to adopt the new tax system before 2023, a time reference that Spain would have wanted closer.

The tax agreement reached by the OECD includes the setting of a minimum corporate rate of 15% for companies with a turnover of 750 million euros or more. As a second pillar, the agreement establishes the principle that multinationals must contribute where they generate their profit and not only where they have their tax residence.

Where the G-20 is not going to achieve a global commitment is on one of the biggest economic problems afflicting developed countries at the moment and which refers to the global problems of energy supply and raw materials. “We need to adapt the energy supply,” the US president, who has chosen to convene a parallel ‘mini-summit’ to discuss this issue with 15 G-20 leaders this Sunday in Rome, told the meetings.

Peaceful protests

The ratification of the agreement for a minimum global taxation of 15% of the multinationals and the commitment to reach 70% of the world population vaccinated by mid-2022 are the two concrete agreements that the G-20 hopes to offer from Rome, a city for which this Saturday thousands of young environmentalists have marched peacefully and festively in protest against the economic and environmental policies of the powers. “You the G-20, we the future,” the protesters wrote on one of their largest banners.

In relation to vaccines, President Pedro Sánchez announced in the G-20 plenary that he announced that in the first quarter of 2022 Spain will have reached 50 million of vaccines donated to disadvantaged countries. “Each Spanish will donate more than one vaccine to the most vulnerable,” underlined the economic vice president Nadia Calviño, who accompanies Pedro Sánchez at this summit.

International disputes

The fishing conflict between France and the United Kingdom has flown over the summit. In an unexpected move, the British Prime Minister, Boris Johnson, he complained to the president of the European Commission, Ursula von der Leyen, for the threats “completely unjustified” from Paris on fishing licenses. London ruled this way after the French president, Emmanuel Macron, said in an interview that the conflict has put into discussion “credibility & rdquor; of the British Government. The outcome of the dispute may be known this Sunday at the meeting that both countries have decided to hold in Rome, taking advantage of the physical presence of both leaders.

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Similarly, the G-20 summit has also served to address the future of the nuclear agreement with Iran (2015), which limited the country’s production of enriched uranium in exchange for the lifting of trade sanctions and that Tehran abandoned after being sabotaged by Donald Trump. On this subject, Germany, France, the United States and the United Kingdom issued a joint statement on Saturday in which they encourage the Iranian Government to make “an effort in good faith & rdquor; to rejoin the pact “urgently & rdquor ;. This is “the only way to avoid a dangerous escalation & rdquor ;, which” does not interest any country & rdquor ;, added the big four.

Another of the latent conflicts, with Turkey, will also end up being addressed in this meeting of leaders, after it was learned that the US president, Joe Biden, will meet with his Turkish counterpart, Recep Tayyip Erdogan, this Sunday in Rome, on the sidelines of the G20, at a time of significant tension between the two NATO countries.