G7 must secure green recovery from Covid: UK

30 May, 2021 12:00 AM printer

LONDON: The Group of Seven wealthy nations must seek a “green and global economic recovery” after the coronavirus pandemic, Britain declared Friday before a leaders’ summit in two weeks.

British finance minister Rishi Sunak made no mention of US demands to harmonise tax rates for companies, after hosting an online gathering with counterparts and central bankers from Canada, France, Germany, Italy, Japan and the United States, reports AFP.

The G7 finance ministers will next meet in person in London on June 4-5, in the run-up to the summit in southwest England the following week, which is set to be joined by US President Joe Biden.

In London, the finance ministers are expected to debate the US push to set a minimum rate of 15 percent for corporate taxes, to prevent multinational companies including tech giants from gaming the system.

France and Germany have backed the US initiative, but Britain is on the fence, calling for a wider package of reforms to international taxation to target company incomes more broadly.

“I look forward to next week’s meeting as we continue working together to support jobs and secure a green and global economic recovery,” Sunak said in a statement Friday.

With Britain also set to host the COP26 UN climate summit in November, he urged the G7 to “ensure tackling climate change is prioritised in economic and financial policy”.

Such action would include more climate-related disclosure by companies, and the development of financial reporting standards linked to environmental sustainability. Representing the eurozone at Friday’s meeting, Irish Finance Minister Paschal Donohoe said it also covered regulation of digital currencies.