Latest News

U.S. Treasury’s Yellen sets ambitious Europe agenda: taxes, pandemics, climate

0
Economy16 minutes ago (Oct 28, 2021 07:20)

© Reuters.

By David Lawder and Andrea Shalal

WASHINGTON/ROME (Reuters) – U.S. Treasury Secretary Janet Yellen will use her third trip to Europe to push a slew of White House global economic priorities on corporate taxes, climate financing, preventing new pandemics and easing inflationary supply chain disruptions.

Over the next week, she will make the pitches at Group of 20 meetings in Rome and at the United Nations Climate Change Conference 26 (COP26) in Glasgow, with an interim stop in Ireland to thank the low-tax country for its hard-fought decision to support a deal for a 15% global minimum corporate tax.

U.S. President Joe Biden and other G20 leaders at a weekend summit are expected to endorse the tax deal agreed by 136 countries, cementing progress made this year under Yellen’s leadership.

NEXT PANDEMIC

Yellen arrived in Rome late on Wednesday — a day earlier than Biden — to hold bilateral meetings and attend a G20 joint finance and health ministers meeting on Friday, the day before the leaders summit this weekend.

She will urge the finance and health group to better prepare for the next pandemic through a new disease detection and coordination forum and a separate financing mechanism. She outlined the proposals in a letter to G20 colleagues along with Sri Mulyani Indrawati, the finance minister for Indonesia, which chairs the G20 in 2022.

One diplomatic source said other G20 countries had not fully embraced the financing mechanism amid a crush of other funding requests for climate, COVID-19 vaccinations and debt relief.

Treasury officials said Yellen will also push for faster progress in debt restructurings for highly indebted countries under a G20 framework.

The G20 is not expected to support a proposed extended freeze of poor countries’ bilateral debt payments after the end of this year, the official added.

TAX DEAL BENEFITS

On Sunday and Monday, Yellen will meet with government and business leaders in Dublin to discuss the tax deal, which will affect many U.S. technology companies that were drawn to invest there by Ireland’s low 12.5% tax rate.

Treasury officials say they are confident about the Biden administration’s ability to implement the global tax deal using a Democrats-only budget measure even as a deeply divided Congress struggles to agree on Biden’s massive spending bill.

U.S. Senate Democrats have proposed a new, across-the-board 15% corporate minimum tax to work alongside a proposed tax on the unrealized gains from billionaires’ assets.

At COP26 in Glasgow on Nov. 2-3, Yellen will emphasize using multilateral development banks to mobilize more private sector investments in carbon abatement and using tax and economic policy incentives to accelerate the transition a lower carbon economy, Treasury officials said.

She will also tout work done by the U.S. Financial Stability Board to incorporate climate risks as an “emerging threat” to financial stability in the regulatory agency’s every day work.

But here too, Yellen will have to contend with a less ambitious U.S. climate spending agenda as incentives to replace coal power plants with wind, solar and nuclear power were dropped from the package.

U.S. Treasury’s Yellen sets ambitious Europe agenda: taxes, pandemics, climate

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

BOJ Stands Pat, Signals Delayed Recovery as Election Looms

Previous article

France says will act tough with UK now to get fishing licences

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in Latest News