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    Joe Biden’s mission at the G7 summit: to recruit allies for the next cold war | Rafael Behr

    Joe Biden crosses the Atlantic this week on a tide of goodwill. After four years of Donald Trump, European leaders are grateful for the mere fact of a US president who believes in democracy and understands diplomacy.Trump had no concept of historical alliance, strategic partnership or mutual interest. He saw multilateral institutions as conspiracies against US power, which he could not distinguish from his own ego. He heard European talk of a rules-based international order as the contemptible bleating of weakling nations.Biden’s stated purpose is bolstering that order. In an article published in the Washington Post on the eve of his trip, the president talks about “renewed” and “unwavering” commitment to a transatlantic relationship based on “shared democratic values”.The itinerary starts in Cornwall with a gathering of G7 leaders. Then comes Brussels for a Nato summit, plus meetings with presidents of the European Council and Commission. Biden intends to orchestrate a surge of western solidarity as mood music ahead of a final stop in Geneva, where he sits down with Vladimir Putin. On that front, a stable chilling of relations will count as progress after the downright weirdness of Trump’s willing bamboozlement by the Kremlin strongman.A re-enactment of cold war choreography would suit Putin by flattering his pretence that Russia is still a superpower. In reality, Washington sees Moscow as a declining force that compensates for its shrunken influence by lashing out where it can, causing mischief and sowing discord. Putin is seen as an irritant, not a rival.That is in marked contrast to the view of China – an actual superpower and the eastern pole that Biden has in mind when he talks about reviving an alliance of western democracies. In that respect, the repudiation of Trumpian wrecking-ball rhetoric can be misleading. It sounds to European ears as if the new White House administration is hoping to set the clock back to a calmer, less combative epoch. In reality, Biden is coming to tell Europe to get its act together in the coming race for global supremacy with Beijing.By Europe, in this context, the president also means Britain. Boris Johnson might imagine himself a world leader of continental stature, but a US president is not required to indulge that fantasy.Biden takes a dim view of Brexit, seeing it as a pointless sabotage of European unity. The White House preferred Britain as a pro-US voice wielding influence inside the EU. Since that function is lost, Brexit’s only utility is in making it easier for the UK to embrace economic and strategic vassalage to the US. That means toeing a hawkish line on China.European nations should not really have to pause for long if the choice is alignment with Washington or Beijing. It is easy to muster resentment of US global swagger and point out hypocrisies in its claim to be a beacon of political freedom. But the alternative is an expansionist totalitarian state that militates against democracy and is currently engaged in a genocide against the Uyghurs.If China were a poorer country, Biden’s mission would be easier. But the economic gap between the established superpower and the challenger is closing. Per capita, Americans are still much better off, but China could overtake the US in gross domestic product by the end of this decade. With that heft comes world-leading technological capability with crossover military application that keeps the Pentagon up at night.During the cold war, the Kremlin maintained a credible military rivalry with the west but was not an economic competitor for long. The collapse of the Soviet model seemed to prove that political freedom and prosperity came as a package. There could be no enterprise without markets, no markets without fair rules, and no enforceable rules without democracy. The Chinese Communist party’s hybrid model of authoritarian capitalism appears to have disproved that theory.When the G7 was conceived in the 1970s, its combined membership – the US, Canada, Britain, France, Germany, Italy and Japan – comfortably represented a commanding share of global wealth. There was a natural association of liberal democratic institutions and economic success. Today, those seven nations’ combined GDP is down to 40% of the world total. The west is still rich, but it is no longer the world’s envied super league.Chinese money gives Europe commercial incentives that compete with its high-minded rhetoric on democratic values. China is Germany’s biggest export market. Smaller EU members have welcomed Chinese investment in infrastructure and businesses, although qualms are steadily growing about built-in political strings and security trapdoors. A huge Brussels-Beijing trade deal, signed last year (much to Washington’s dismay), is currently frozen as part of a tit-for-tat dispute over European criticism of Chinese human rights abuses.But EU governments simply don’t feel US levels of urgency to contain China. Geography is a factor – the US has a Pacific coast and strategic commitments to Taiwan, where Britain and France, for all their naval bravado, are little more than spectators. There is a conceptual difference too. As one diplomat puts it, Europe doesn’t like what China does, but the US doesn’t like what China is. The idea of the US being superseded as the paramount global power within the current century is existentially appalling for Washington.The Trump phenomenon compounds that anxiety for the current White House administration. It was a near-death experience for America’s constitutional order; an intimation of mortality for a political and economic model that looked insuperable at the dawn of the 21st century. The US president urges fellow western leaders to show strength in solidarity because the prospect of division, decline and the discrediting of democracy is more real than at any time in his five-decade Washington career.During that time, Biden has succeeded by patience, diplomacy and soft-spoken understatement. That style earns him a grateful audience in Europe, but the president’s manners should not be mistaken for mildness of purpose; the modest style is deployed in service of a tough message. He is not flying across the Atlantic to wallow in nostalgia for the alliances that won the first cold war. He is drumming up recruits for the second one. More

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    Biden trumpets democracy abroad in Post op-ed – as threats spread at home

    Joe Biden will use his visit to Europe this week to “rally the world’s democracies” in a reset of US foreign policy after four turbulent years under Donald Trump – all while threats to American democracy, stoked by Trump, proliferate at home.The president’s plan for the trip was set out in a column for the Washington Post on Saturday night, as Trump spoke to Republicans in North Carolina.Previewing meetings with “many of our closest democratic partners” and Vladimir Putin, Biden promised to “demonstrate the capacity of democracies to both meet the challenges and deter the threats of this new age”.Critics may point out that the president would do well to face up to attacks on democracy at home. He has put Vice-President Kamala Harris in charge of the matter but there are many fronts to the battle.In the states, Republicans have passed laws to restrict ballot access and to make it possible to overturn election results.On the stump, Trump continues to peddle his lie that Biden’s victory in November was the result of fraud. In Greenville on Saturday, the former president called his defeat “the crime of the century”.In Washington last month, Republicans in the Senate blocked a bipartisan commission to investigate the attack on the US Capitol on 6 January, by supporters Trump told to “fight like hell” in his cause.In Biden’s own party, centrist senators stand in the way of voting rights protections.In his column for the Post, Biden tied another domestic priority – infrastructure spending, currently tied up in seemingly doomed negotiations with Republicans – to a chief foreign policy aim.“Just as it does at home,” he wrote, “honing the ability of democracies to compete and protecting our people against unforeseen threats requires us to invest in infrastructure. The world’s major democracies will be offering a high-standard alternative to China for upgrading physical, digital and health infrastructure that is more resilient and supports global development.”In North Carolina, Trump said China should pay the US and the world $10tn in reparations for its handling of the coronavirus outbreak, while nations should cancel debt to Beijing.Biden touted domestic successes – progress against the coronavirus and the passage of his relief and stimulus package (without a single Republican vote) – and said: “The United States must lead the world from a position of strength.”He saluted the announcement on Saturday by G7 finance ministers of a global minimum corporate tax rate. Further distancing himself from Trump, who withdrew from the Paris climate deal, he said: “We have an opportunity to deliver ambitious progress that curbs the climate crisis and creates jobs by driving a global clean-energy transition.”In office, Trump attacked Nato. Biden saluted the “shared democratic values” of “the most successful alliance in world history. In Brussels, at the Nato summit, I will affirm the United States’ unwavering commitment to … ensuring our alliance is strong in the face of every challenge, including threats like cyberattacks on our critical infrastructure.”Amid proliferating such attacks, he said, it was important that “when I meet with Vladimir Putin in Geneva, it will be after high-level discussions with friends, partners and allies who see the world through the same lens as the United States”.Trump famously caused consternation among the US press corps in Helsinki in 2018, meeting Putin without aides and seeming cowed in his presence.Biden said the US and its allies were “standing united to address Russia’s challenges to European security … and there will be no doubt about the resolve of the United States to defend our democratic values, which we cannot separate from our interests.”Some have asked what Biden hopes to gain from meeting Putin – former Trump national security adviser John Bolton told the Guardian this week, “You meet when you have a strategy in place of how to deal with Russia and I don’t think he has one.”In the Post, Biden heralded his extension of the New Start nuclear arms treaty and responses to cyberattacks.“I will again underscore the commitment of the United States, Europe and like-minded democracies to stand up for human rights and dignity,” he wrote.“This is a defining question of our time: can democracies come together to deliver real results for our people in a rapidly changing world? Will the democratic alliances and institutions that shaped so much of the last century prove their capacity against modern-day threats and adversaries?“I believe the answer is yes. And this week in Europe, we have the chance to prove it.” More

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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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    Queen to meet Joe Biden at Windsor Castle on 13 June

    The Queen will meet Joe Biden when he visits the UK for the G7 summit later this month, Buckingham Palace has announced.The head of state will welcome the US president and the first lady, Jill Biden, to Windsor Castle on Sunday 13 June. Biden is due to attend the G7 gathering in Cornwall, which will be held in Carbis Bay from 11-13 June.The Queen met Biden’s predecessor, Donald Trump, when he made a state visit to the UK in June 2019, in the last days of Theresa May’s premiership.The president and first lady sent their condolences to the Queen after the death of the Duke of Edinburgh in April. The Bidens said they were keeping the royal family “in our hearts during this time”.Having taken up his post in the Oval Office, the coronavirus pandemic has limited opportunities for Biden to travel outside the US, so the G7 gathering will be his first foreign engagement in person.Buckingham Palace said in a short statement: “The Queen will meet the president of the United States of America and first lady Jill Biden at Windsor Castle on Sunday 13th June 2021.”There is speculation that the Prince of Wales and Duchess of Cornwall will also meet the couple at some point during their visit to the UK.There have been 14 US presidents during the Queen’s 69-year reign – from Harry S Truman to Biden. Biden will become the 13th American leader to meet the monarch – the only one the Queen did not meet was Lyndon B Johnson.After attending the G7 gathering, when world leaders are expected to discuss a range of issues from climate change to tackling the Covid-19 pandemic, Biden will head to Brussels to join a Nato summit.He is also scheduled to meet the Russian president, Vladimir Putin, in Switzerland on 16 June for talks on repairing relations between Washington and Moscow. More