G7 summit will include measures of "fairer, sustainable and inclusive economic recovery"

The G7 summit will discuss measures for a “fairer, more sustainable and inclusive economic recovery that responds to unique challenges” currently living, announced this Friday the presidency of the United States.

US President Joe Biden and the leaders of the Group of Seven have agreed to continue their policies in support of the global economy “as long as necessary” to create a “strong and balanced” recovery, according to a House statement White.

According to the note, the seven most developed economies are looking for the solution to the crisis generated by the pandemic to “benefit the middle class and working families”.

These measures would, if adopted, be in addition to the global minimum corporate tax that the finance ministers of this group agreed last week at a meeting in London, and which the US considers a “priority”.

The rate, which would be at least 15%, has received the decisive boost from Biden since his arrival in the White House, after the United States under Donald Trump avoided committing to this initiative, which is being discussed within the OECD.

Washington sees this as “a critical step toward ending the decades-long race to the bottom that has nations competing over who offers the lowest rate to big business at the expense of protecting workers, investing in infrastructure and growing the middle class “.

By making large multinationals pay their share and increasing resources to fund internal renewal priorities, a global minimum corporate tax is a key part of our efforts.”, added the note.

The White House wants countries to end the digital tax that some of them have adopted and stresses that the plan will affect “large multinationals in general, both domestic and foreign, and not just the technology sector”.

This principle “will ensure that large multinationals pay a little more where they operate, regardless of whether or not they are physically based there.”

According to the Financial Times, the UK is pushing for the corporation tax deal not to apply to financial companies, the pillar of its economy and the City of London.

British Prime Minister Boris Johnson today welcomes the G7 leaders at a summit considered crucial for the global fight and recovery from the covid-19 pandemic.

The summit, which runs until Sunday, takes place in Cornwall, south-west England, and will be the first presence between the respective leaders in two years.

Equitable access to anti-covid-19 vaccines, with an emphasis on redistributing excess doses from G7 member countries (Germany, Canada, United States, France, Italy, Japan and the United Kingdom), will be at the top of the agenda.

G7 leaders are also expected to discuss the transfer of technologies and resources by countries and pharmaceutical companies to facilitate and increase vaccine production.

The US return to the Paris Agreement also represents an opportunity to move forward with more commitments in combating climate change.

The participation of Joe Biden is also an opportunity for greater unity in terms of foreign policy, with discussions and statements about the situations in Myanmar, Afghanistan, Ethiopia, Belarus, Libya and Iran being expected.

Relations with Russia and China are expected to be discussed, after criticism made in May by the G7 foreign ministers of Moscow and Beijing.

In addition to the seven countries, the summit in Cornwall will count with the participation of South Africa, Australia, South Korea and India, as guests.

Also participating are the President of the European Commission, Ursula von der Leyen and the President of the European Council, Charles Michel.


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