“After many years of discussions and on the basis of the progress made last year, we have reached a historic agreement on a more stable and fairer international tax architecture.” This is underlined by the final document of the G20 in Venice, released at the end of the works. “We support – reads the text – the key components of the two pillars, the reallocation of profits of multinational companies and an effective global minimum tax”. It is therefore called to “quickly address the remaining issues and finalize the design elements within the agreed framework, together with a detailed plan for the implementation of the two pillars at our next meeting in October”.
The agreement on multinational taxation
The agreement of the finance ministers and governors on the taxation of multinationals tries to push for a more stable and fair international tax system. The proposal is divided into a minimum rate of 15% and a mechanism for sharing profits between countries. Agreement also on the use of “a mechanism for fixing the price of CO2 emissions and incentives”. Proposed a Covid task force among international organizations. Clashes in the city between police and anti-G20 protesters.
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G20, no to early withdrawal of support measures
The document also reads: “We will continue to support the recovery, avoiding any early withdrawal of support measures, while remaining consistent with the Central Bank’s mandates, including on price stability, and preserve financial stability and fiscal sustainability. in the long term and safeguard it from downside risks and negative repercussions ». «We will continue – continues the document – our international cooperation to guide the global economy towards strong, sustainable, balanced and inclusive growth. We confirm our April exchange rate commitments. We reaffirm the important role of open and fair rules-based trade in restoring growth and job creation and our commitment to fight protectionism and encourage concerted efforts to reform the WTO.
Franco: very important agreement
For the Minister of Economy, Daniele Franco, the G20 Finance has reached a “very important agreement, some of my colleagues have said” historic “, with which we support the main components of the plan for the taxation of multinationals with a minimum tax and distribution of profits among the countries where they operate ”. Franco explained that “we intend to implement the agreed mechanisms at the end of October” at the G20 level of government leaders. The Minister of Economy then said he was confident about the tax agreement with dubious countries, and said that, with the agreement, “tax competition is not abolished but in some way regulated”. The minimum tax at 15%, Franco continued, “should interrupt and reduce the margins of tax competition, the ‘race to the bottom’, and lead to a fairer and more coordinated world incentive system, where there is less tax competition” . We will support growth as long as necessary, it was later said.
Visco, a multi-year road map for sustainable finance
“We have a multi-year ‘road map’ on sustainable finance to tackle climate change, but even beyond, if we think about the sustainability of our economies”, commented the Governor of the Bank of Italy, Ignazio Visco. «We have developed a reflection – he added – on how to align the financial sphere with the objective of sustainability. We need timely information on the risks and opportunities of change, climate assessment, financial incentives and cross-cutting elements on potential effects, through Fintech tools for sustainable finance ».