- G7 Countries Close to Agreement on Taxation
- Inflation Statement From the ECB
- Belarus Detained a Journalist on the Plane Upon Fake Notice
G7 Countries Close to Agreement on Taxation
According to the Financial Times’s report, G7 countries are close to an agreement on corporate tax for multinational companies and that a global deal could be made within this year.
According to the report, with the progress made by senior officials in the last few days, G7 countries can reach an agreement by Friday.
If the Finance Ministers sign an agreement, the G7 leaders can submit the plan to 135 countries by signing the official agreement at the summit on June 11-13.
The U.S. last week scaled back its ambitions on a global minimum corporate tax rate, lowering it from 2% to an effective rate of 15% to increase its appeal internationally.
Besides, Germany and Italy have been outspoken in their support for a global minimum tax. According to Daniele Franco, the finance minister of Italy, it is “another crucial step,” and the possibilities for a global compromise on international tax reform are “now concrete.”
On the other hand, France and the United Kingdom have placed greater emphasis on where tax payments are made. As a result, the U.K. has been described as “difficult” in the negotiations by international officials.
In a sign of growing interest in the chances of a global deal on corporate taxes, Jake Sullivan, the U.S. national security adviser, on Saturday tweeted: “The world is closer than ever before to a global minimum tax. Great to hear positive reception to our proposal, and thanks to Secretary Yellen and our partners worldwide for their work on this. This is what it looks like to lead the world to end the race to the bottom.”
Inflation Statement From the ECB
“We think that the rise in inflation in 2021 is temporary,” said Christine Lagarde, President of the European Central Bank (ECB), stating that they were discussing inflation at the Eurogroup meeting.
Stating that the Euro Zone is in the process of economic recovery, Lagarde said, “I believe we will reach the level of Gross Domestic Product (GDP) before the Covid-19 pandemic in 2022.”
Lagarde pointed out that uncertainties regarding economic recovery continue. The epidemic will leave “traces” in some sectors and countries. Policies supporting economies should continue in the coming months due to uncertainties and a different pace of recovery.
“We discussed the inflation issue at the Eurogroup meeting. We, as the ECB, think that the rise in inflation in 2021 is temporary, ” Lagarde stated.
Euro Group President Donohoe also pointed out that the economic recovery in Europe has begun.
Recalling that the vaccination process is gaining momentum in Europe, Donohoe said that the Eurogroup would continue its supportive economic policies as long as needed.
According to Donohoe, who is also Minister for Finance of Ireland, “to be sustainable, the recovery also needs to be inclusive and limit risks of long-term scarring.”
“That’s why budgetary supports, both at national and E.U. levels, will continue to address the uneven impacts of the pandemic and help those most exposed to the effects of the pandemic,” he explained.
Belarus Detained a Journalist on the Plane Upon Fake Notice
European Union (E.U.) leaders Nato and the USA reacted to the forcible landing of Ryanair’s passenger plane from Greece to Lithuania in Minsk on the allegation of “bomb notice” by Belarus and the detention of opposition journalist Roman Protasevich on the plane. No explosives were found on the plane.
Pointing out that the Belarusian warplane was used in the incident, U.S. Secretary of State Antony Blinken said, “A full investigation must be conducted for this incident, which we strongly condemn.”
E.U. leaders are expected to discuss how to respond to Belarus regarding the incident today. A senior E.U. official described the incident as ‘ hijacking, ‘and the U.S. State Department said it was “a shocking act.”
The 26-year-old journalist works for NEXTA, a Polish online news agency that last year used the Telegram message app to transmit footage of enormous protests against Belarusian President Alexander Lukashenko at a time when it was difficult for foreign media to do so.
Protasevich, who currently works for the Belamova Telegram channel, is wanted in Belarus on extremism charges. He is accused of organizing mass riots and promoting societal hate, which he denies.
As European officials threatened new sanctions on Belarus, U.S. Secretary of State Antony Blinken called the forced landing and arrested a “shocking act,” demanded Protasevich’s immediate release, and said President Joe Biden’s administration was “coordinating with our partners on next steps.”