The G7 Commits To Taxes On Multinationals, Zero Emissions By 2050 And Sends Messages To China And Russia

At a G8 in October 2008, Nicolas Sarkozy pledged to refound capitalism on ethical grounds. What came after cuts, social sacrifices, destruction of public services, dismissal of civil servants, lowering of pensions, cutting of rights for the unemployed and the rescue of banks –too big to fail, they were saying-. What will happen now?

In this June 2021 G7 pandemic, world leaders claim to have learned their lesson. “We are determined that this time it will be different,” they sentence. For now, as the approved joint declaration indicates, they acknowledge that, collectively, the boost in public money in this year and a half of the pandemic has been unprecedented. “We have driven $ 12 trillion worth of recovery plans during the pandemic. We will continue to support our economies for as long as needed, moving from responding to the crisis to promoting growth into the future, with plans that create jobs, invest in infrastructure, drive innovation, support people, so no one regardless of age, ethnicity or gender is left behind. We recognize that this has not always been the case in previous global crisis recoveries, and we are determined to may our response continue to be different this time. “


The free bar on public spending in the European Union will remain open this year and next. Starting in 2023, debt and deficit controls are expected to return, but under what conditions remains to be decided.

Part of this drive between past recipes and lessons for the future is access to vaccines. Some countries, such as the United States, support the liberalization of patents to facilitate universal access to combat the pandemic, while in the European Union the European Medicines Agency (EMA) has already authorized the use of Pfizer from the age of 12 when there are entire continents without vaccines for their vulnerable people.

Thus, the G7 statement seeks a compromise solution that reinforces the European approach: that patents are not liberalized, but that technology is shared and sold at a bargain price to developing countries. In addition, the G7 has agreed to donate one billion vaccines to the poorest countries. “We must end the pandemic and prepare for the future, bringing safe vaccines to as many people as possible as quickly as possible. The G7 commitments since the start of the pandemic are more than 2 billion doses of vaccines. And , here in Carbis Bay, that’s 1,000 doses over the next year. At the same time, we will create the appropriate frameworks to strengthen our defenses against threats to global health by increasing and coordinating global manufacturing capacity on all continents; improving systems early warning and supporting science to shorten the cycle for developing safe and effective vaccines, treatments and tests from 300 to 100 days. “

Community sources explain that the EU has celebrated the return of “the United States to the negotiating table and aligned itself with common values ​​and international cooperation. The relationship was tense in recent years and now it seems revitalized.” In this sense, the EU “insisted so much on the need to accelerate access to vaccines and to ensure economic recovery. The EU narrative has regained ground with a strong mention of exports (350 million this year so far a year and 700 million by the end of the year) .. The EU has been the world’s pharmacy in this pandemic. We have also managed to reach a very balanced position on the exemption of intellectual property rights, with the clear objective of vaccinating the world population and end the pandemic in 2022 “.

The EU claims its role “of leadership in the climate transition. Confirmed the objective of climate neutrality, the communiqué talks about the acceleration of the phase-out of coal and the end of government support for coal abroad; the price of carbon is mentioned as key element. There is also a strong focus on financing for development, especially in Africa: the G7 will improve its contribution to developing countries, in line with our values ​​and standards, and will contribute private money. “

In addition, community sources highlight “the approval of the finance ministers’ agreement on global corporate tax reform”, and affirm the “multifaceted approach to China: partner, competitor, rival. The EU wants to engage constructively with China. on issues such as climate change while remaining firm in our values ​​and defending our interests. ”

Regarding “future prosperity”, the G7 is committed to advocating “freer and fairer trade within a reformed trading system, a more resilient global economy and a fairer global tax system. We will work together to secure the future borders of the global economy and society, from cyberspace to outer space, increasing the prosperity and well-being of all people, while upholding our values ​​as open societies. We are convinced of the potential for technological transformation for the common good according to with our shared values. ”

In this sense, the leaders of the main countries of the world, signed the agreement of their finance ministers a week ago for a minimum tax of 15% for large companies: “We need a tax system that is fair throughout the world. We support the historic commitment made by the G7 on June 5. We will now continue the discussion to reach a consensus for a global agreement on an equitable solution on the allocation of tax rights and an ambitious global minimum tax of at least 15% on a country-by-country basis, through the G20 and the OECD. We hope to reach an agreement at the July meeting of the G20 finance ministers and central bank governors. With this we take a significant step towards creating a system fairer and more appropriate tax system for the 21st century and reverse a 40-year career in reverse. Our collaboration will create a stronger playing field, help raise more tax revenue to support investment and will crack down on tax evasion. “

The G7 has also reached conclusions related to the environment. “Protect our planet by supporting a green revolution that creates jobs, reduces emissions and limits the rise in global temperatures by 1.5 degrees. We are committed to achieving zero emissions by 2050, cutting our emissions in half by 2030 , increasing and improving climate finance through 2025; and conserving or protecting at least 30% of our land and oceans by 2030. ”

In relation to development aid, the G7 speaks of a “radical change” in the approach on “investment in infrastructure, through clean and green growth. A new agreement with Africa, with the support of the International Monetary Fund to the countries most in need to support our goal of $ 100 billion. ”

The G7 further states: “We will harness the power of democracy, freedom, equality, the rule of law and respect for human rights to respond to the most important issues and overcome the greatest challenges. We will do it in a way that values ​​the individual and promotes equality, especially gender equality, with the goal of getting an additional 40 million girls to receive an education, with at least $ 2.75 billion for the Global Partnership for Education. “

If one at the beginning of the millennium, geostrategic concerns were focused on the Middle East, now the focus is on Russia and China, even more so from the moment that US troops finish leaving Afghanistan.

“We reiterate our interest in stable and predictable relations with Russia,” says the G7: “We reaffirm our call on Russia to stop its destabilizing behavior, including interference in the democratic systems of other countries, and to comply with its international obligations and commitments. In particular, we call on Russia to urgently investigate and credibly explain the use of chemical weapons on its soil, to end its systematic crackdown on civil society and independent media, and to identify and hold to account those within its borders who carry out cyberattacks or use cryptocurrencies for cybercrime. “

“With respect to China and competition in the global economy,” the G7 is committed to responding to “non-trade policies and practices that undermine the fair and transparent functioning of the global economy. In the context of our respective responsibilities in the multilateral system , we will cooperate in addressing climate change and biodiversity loss in the context of COP26 and other multilateral discussions. At the same time, we will promote our values, calling on China to respect human rights and fundamental freedoms, especially in relation to Xinjiang, and the rights, freedoms and autonomy for Hong Kong enshrined in the joint declaration between China and the United Kingdom. “



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