A global ‘minimum tax’ for multinationals developed by the OECD has the green light from the finance ministers and governors of G20, and is ready for the political agreement of the Heads of State and governments later this month in Rome. And the G20 Finance, meeting in Washington on the occasion of the IMF/World Bank meetings, launches a stop to projects to create a stablecoin, or digital currencies on a global scale, because rules and controls are needed.
Indiscretions say that the Heads of State have said that they support the political agreement, as formulated by the OECD on 8 October with the minimum rate of 15%, but now the OECD needs to rapidly develop the model rules and multilateral instruments: everything seems ready, however, for an agreement in principle at G20 by the leaders of Rome on what the final statement of G20 Finance defines as a more stable and fair international tax system.
Regarding stablecoin projects, such as that of Facebook, a decisive moral suasion comes from G20. No global stablecoin should become operational until all operational, legal and supervisory requirements are properly addressed through proper architecture and adhering to applicable standards. These are some of the critical issues of the fourth G20 Finance. At the center of the talks, in Washington, there was of course the recovery and inflation which, having returned to gallop with the flare-up of energy prices, threatens to put an end to a decade of particularly expansionary monetary policy. While the global recovery looks solid, there are still many divergences between countries, largely reflecting different vaccination rates. For this reason, it seems that economic policy will have to continue to offer support for the recovery for as long as necessary. G20 agrees with the IMF that the factors underlying the sharp acceleration of inflation in advanced countries are largely transitory. However, G20 remains determined to bring the pandemic under control everywhere.
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