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    A global agreement on taxing corporations is in sight – let’s make sure it happens

    For more than four years, France, Germany, Italy and Spain have been working together to create an international tax system fit for the 21st century. It is a saga of many twists and turns. Now it’s time to come to an agreement. Introducing this fairer and more efficient international tax system was already a priority before the current economic crisis, and it will be all the more necessary coming out of it.Why? First, because the crisis was a boon to big tech companies, which raked in profit at levels not seen in any other sector of the economy. So how is it that the most profitable companies do not pay a fair share of tax? Just because their business is online doesn’t mean they should not pay taxes in the countries where they operate and from which their profits derive. Physical presence has been the historical basis of our taxation system. This basis has to evolve with our economies gradually shifting online. Like any other company, they should pay their fair share to fund the public good, at a level commensurate with their success.Second, because the crisis has exacerbated inequalities. It is urgent to put in place an international tax system that is efficient and fair. Currently, multinationals are able to avoid corporate taxes by shifting profits offshore. That’s not something the public will continue to accept. Fiscal dumping cannot be an option for Europe, nor can it be for the rest of the world. It would only lead to a further decline in corporate income tax revenues, wider inequalities and an inability to fund vital public services.Third, because we need to re-establish an international consensus on major global issues. The Organisation for Economic Co-operation and Development, with the support of our countries, has been doing exceptional work in the area of international taxation for many years. The OECD has put forward fair and balanced proposals on both subjects: the taxation of the profit of the most profitable multinationals, notably digital giants (Pillar 1), and the minimal taxation (Pillar 2). We can build on this work. For the first time in decades, we have an opportunity to reach a historic agreement on a new international tax system that would involve every country in the world. Such a multilateral agreement would signal a commitment to working together on major global issues.With the new Biden administration, there is no longer the threat of a veto hanging over this new system. The new US proposal on minimal taxation is an important step in the direction of the proposal initially floated by our countries and taken over by the OECD. The commitment to a minimum effective tax rate of at least 15% is a promising start. We therefore commit to defining a common position on a new international tax system at the G7 finance ministers meeting in London today. We are confident it will create the momentum needed to reach a global agreement at the G20 in Venice in July. It is within our reach. Let’s make sure it happens. We owe it to our citizens.
    Nadia Calviño, second deputy prime minister of Spain, is the country’s economy minister. Daniele Franco is minister of economy and finance in Italy. Bruno Le Maire is France’s minister of economy, finance and recovery. Olaf Scholz is German vice-chancellor and minister of finance More

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    G20 leaders pledge to distribute Covid vaccines fairly around world

    G20 leaders meeting remotely pledged on Sunday to “spare no effort” to ensure the fair distribution of coronavirus vaccines worldwide, but offered no specific new funding to meet that goal. The virtual summit hosted by Saudi Arabia was an awkward swan song for Donald Trump, who skipped some sessions on Saturday to play golf, paid little attention to other leaders’ speeches and claimed the Paris climate agreement was designed not to save the planet but to the kill the US economy.Joe Biden has promised to rejoin the accord on day one of his presidency, giving other world leaders hope that the UN climate change conference at the end of next year will see more ambitious pledges, including from China, to cut carbon emissions by 2050.Trump’s isolationist diplomacy has allowed China to escape some scrutiny both on its climate and debt forgiveness measures. “To protect American workers, I withdrew the country from the unjust Paris agreement,” Trump told the G20. “I refuse to surrender millions of American jobs and send trillions of American dollars to the world’s worst polluters and environmental offenders, and that’s what would have happened.”The bulk of the summit focused on ensuring that the coronavirus vaccines expected to hit the market imminently are available for distribution at affordable prices in poorer countries.The EU and the UN say there is a £4.5bn funding shortfall this year that the G20 nations should fill. Countries have so far invested $10bn in the Access to Covid-19 Tools (ACT) Accelerator and its vaccine pillar, the Covax Facility. The two schemes are designed to ensure the vaccines do not remain the preserve of the wealthiest economies.The UN secretary general, António Guterres, said: “The recent breakthroughs on Covid-19 vaccines offer a ray of hope. But that ray of hope needs to reach everyone. That means ensuring that vaccines are treated as a global public good, a people’s vaccine accessible and affordable to everyone, everywhere,” he said.“This is not a ‘do-good’ exercise. It is the only way to stop the pandemic dead in its tracks. Solidarity is indeed survival.”The final G20 communique simply said: “We have mobilised resources to address the immediate financing needs in global health to support the research, development, manufacturing and distribution of safe and effective Covid-19 diagnostics, therapeutics and vaccines.“We will spare no effort to ensure their affordable and equitable access for all people, consistent with members’ commitments to incentivise innovation.” It gave no supporting evidence or statistics.In a sign of the competition for access to vaccines and national prestige, Russia said its Sputnik V would be much cheaper than those offered by Pfizer and Moderna. More