G7 finance ministers and central bank governors meet for last time under UK presidency
Presiding over the virtual session, Chancellor Rishi Sunak congratulated and thanked his counterparts for their efforts over the past year
Led by the UK, the G7 supported historic global tax changes to make big companies pay taxes where they do business
During the virtual meeting of finance ministers and central bank governors, Rishi Sunak highlighted the series of major deals that have been reached under UK leadership over the past 12 months to help build a global economy stronger and more resilient.
This includes agreeing to support a landmark international tax deal to address the challenges that arise from an increasingly globalized and digital economy.
Landmark agreement reforms global tax rules so that large international companies pay taxes in the countries where they operate, as well as the fight against global evasion through a minimum tax rate of 15% . The UK has spearheaded the search for an international solution to the challenge of taxing tech multinationals for almost a decade, with the Chancellor making a global deal a key priority for Britain’s G7 Presidency .
Other key achievements include:
Commit to working together for as long as necessary to support the global economic recovery from the Covid-19 pandemic and tackle global supply issues
Support the allocation of $ 650 billion in special drawing rights from the IMF and secure commitments from stronger economies to channel some of these funds to countries in need
Integrate considerations related to climate change and biodiversity loss into economic and financial decision making
Get G7 agreement for countries to follow UK to mandate climate finance reporting and crack down on proceeds of environmental crimes
Reach G7 agreement to work together to drive market growth to fight antimicrobial resistance
Accept public policy principles for digital currencies from retail central banks (CBDCs) to support and inform national policy and design
Chancellor Rishi Sunak said:
Thank you to my colleagues in the G7 for their tireless work this year – together we have covered a huge amount under the most difficult circumstances, including reaching a landmark agreement on global tax reform to create a fairer tax system and adapted to the 21st century.
I look forward to the German Presidency and to working together to tackle the challenges we face next year.
During today’s meeting, G7 finance ministers and central bank governors discussed the global economy, climate change and antimicrobial resistance.
They agreed to remain vigilant in the face of new variants of Covid-19 while cooperating on global supply issues and exchanged views on how to promote greater resilience of supply chains and how to cope. get a more precise idea of any future disturbances.
Following the commitment made in the June G7 communiqué for a “multi-year effort” to bring about the change needed to meet our zero net climate commitments, G7 finance ministers and central bank governors have agreed today to discuss policies more regularly to advance emissions reduction efforts. , to help advance large-scale international collaboration and coordination. This will be underpinned by a joint macroeconomic analysis to help keep 1.5 degrees within reach, as agreed at COP26.
Based on a commitment made in June, G7 finance ministers also agreed today, through the first such joint statement, on a commitment to strengthen actions within the G7 to support the development of antibiotics in the fight against antimicrobial resistance.
Rishi Sunak praised the joint efforts, hard work and commitment of the G7, while highlighting the progress and successes made over the past 12 months.
The Chancellor concluded by urging ministers to continue working together to tackle global issues before welcoming new German finance minister Christian Lindner. Germany will take over the presidency of the G7 on January 1, 2022.
- deal on landmark global tax reforms that will mean the biggest multinational tech giants pay their fair share in the countries in which they operate, as well as a global minimum rate of 15%, backed by 137 members of the Inclusive Framework of the ‘OECD
- released a joint report on the public policy implications of central banks issuing their own digital currencies and how to ensure that this benefits our economies and societies
Covid / pandemic preparation
worked together to ensure a global recovery from Covid-19, helping low-income countries fight the pandemic and addressing economic impacts, including global supply issues by building on the work of organizations international organizations such as the IMF and the OECD
agreed to tackle antimicrobial resistance by jointly driving the growth of the antibiotics market
Support for low-income countries
supported the allocation of $ 650 billion in IMF Special Drawing Rights – with some voluntary funds already channeled to the IMF’s Poverty Reduction and Growth Trust, and additional support for a new Trust Fund for resilience and sustainability
committed to publishing its own loan-to-loan creditors portfolios to lead by example in sovereign debt transparency
Climate and nature
integrate considerations of climate change and biodiversity loss into economic and financial decision-making
engaged in a multi-year effort to work together to ensure we meet our net zero goals, including coordinating carbon pricing and mitigating carbon leakage
agreed to follow the UK in making climate-related financial reporting mandatory and tackling environmental crimes by strengthening beneficial ownership records of companies