EUROPE EYES TAX ABUSE BY MULTINATIONALS

The EU's four largest economies -- France, Germany, Italy, and Spain -- have stepped up the pressure for agreement to be reached to stamp out tax abuse by multinationals during G7 meetings, according to a Euronews report.

Finance ministers from the intergovernmental organization are meeting in London ahead of a full summit in England in a week's time.

Ministers from the four European heavyweights say the time has come to reach a deal on an "international tax system fit for the 21st century", following their countries' four-year effort.

"It is a saga of many twists and turns. Now it’s time to come to an agreement," Bruno Le Maire, Olaf Scholz, Daniele Franco and Nadia Calviño say in a joint letter to the Guardian.

"Introducing this fairer and more efficient international tax system was already a priority before the current economic crisis, and it will be all the more necessary coming out of it."

Spain is not a member of the G7 but its minister signed the letter in a show of unity.

The four add that the crisis brought by the pandemic has been a "boon to big tech companies", and has "exacerbated inequalities".

An international consensus is needed, building on the work of the Organisation for Economic Co-operation and Development. They cite a window of opportunity provided by US President Joe Biden's proposal for a minimum global corporation tax rate.

"With the new Biden administration, there is no longer the threat of a veto hanging over this new system," the French, German, Italian and Spanish ministers write, referring to the hostile stance taken by Donald Trump.

"The new US proposal on minimal taxation is an important step in the direction of the proposal initially floated by our countries and taken over by the OECD."

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