How the G20 will move on web tax, debts and more
G20, what emerged from the second meeting of finance ministers and central bank governors under the Italian presidency. The article by the economist Chiara Oldani
Finance ministers and central bank governors of the G20 met for the second meeting under the Italian presidency on 7 April 2021 in virtual mode. Ministers and governors had a fruitful exchange and agreed on a series of commitments, included in the official communiqué , issued at the end of the meeting.
The working group under the leadership of Daniele Franco 's Italian Treasury is working hard to pursue a global shared approach, smoothing the edges with the economic diplomacy of 19 countries (Saudi Arabia, Argentina, Australia, Brazil, Canada, China, Korea South, France, Germany, Japan, Great Britain, India, Indonesia, Italy, Mexico, Russia, South Africa, Turkey, United States) and the European Union.
The official press release, a dense document of 8 pages, is full of programmatic commitments: from the fight against the economic and social damage caused by the Covid-19 pandemic, to climate change, to the digital tax through the cancellation of 200 billion dollars of debt of poor countries. The pandemic crisis has increased economic risks, increasing social spending, collapsing consumption and revenue and, therefore, fueling a sustained growth in public debt; it is inevitable that financial risks will increase in the near future, as also confirmed by the recent analyzes of the International Monetary Fund .
It is unlikely that all the programmatic commitments will actually be completed in just one year, but the change of pace compared to the recent past is clear.
At the next meeting of the finance ministers in July in Venice, this time hopefully "in presence", the OECD proposal for a digital business taxation scheme ( BEPS ) to fill the black hole in public budgets will have to be tackled more concretely; Furthermore, a common scheme of action will have to be defined to make the global financial markets integrated, liquid and above all to define the rules for the restructuring of excessive debts. Yes, excessive: of banks, financial institutions but also governments. Dust off your helmets!
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/come-si-muovera-il-g20-su-web-tax-debiti-e-non-solo/ on Thu, 08 Apr 2021 08:06:01 +0000.