Richest nations in the world aim for tax revolution: Brussels edition

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Welcome to Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

It’s a question that has confused EU leaders for years and has since moved onto the global stage: how to prevent big companies – like Amazon – from reduce their tax bill by shifting profits between countries. The richest nations in the world have paved the way for a corporate tax revolution, but still have their work cut out for them. Talks in the coming weeks between more than 100 governments ahead of a Group of 20 meeting in July will build on the outline of a deal reached earlier this month by G-7 finance ministers. Agreeing on which companies will be covered and ensuring that governments can continue to use low taxes to encourage virtuous economic activity are among the challenges that have eclipsed seven years of talks organized by the OECD. While an overall minimum of 15% will remain a difficult sell for European countries like Ireland, whose corporate rate is 12.5%, the the payoff for success is enormous.

John ainger and Craig stirling

What is happening

Let’s wait | Do not expect too much from today’s Eurogroup meeting as banking union is concerned, particularly in view of the upcoming German elections. There is goodwill around the table, an EU official said, but ministers may fail to agree on an ambitious work plan. Now is not the best time, thought the manager, with the end of the year a more practical proposal.

Nuclear election | The frontrunner in tomorrow’s presidential election in Iran is an austere cleric and anti-West judicial leader, set to win as millions boycott a vote their favorite reformist candidates were not allowed to. challenge. Golnar Motevalli watches what the outcome would mean for the nuclear talks.

Flat truths | the The truce between the US and the EU on aircraft subsidies has left doubts about whether the dispute will be fully resolved. It all comes down to the fact that both parties have the right to reimpose punitive tariffs if the other party does not. up to the deal.

Carbon reform | Seven of the EU’s main energy producers are calling on policymakers to agree to an ambitious and swift reform of the world’s largest carbon market with the aim of helping investors in the transition to climate neutrality. This is what they want.

In case you missed it

Russian faults | President Joe Biden has said he wants to meet Russian Vladimir Putin in Geneva to set “rules of the road” in a relationship that has been eroding for years. After about three hours together, the two leaders showed how they interpreted this lens differently.

ECB review | In a countryside retreat near Frankfurt this weekend, European Central Bank President Christine Lagarde and her colleagues will attempt to sort out the last remaining arguments in the biggest overhaul of their monetary policy in nearly two decades. The goal is nothing less than reorganize the ECB for the 21st century in the middle swirling expectations about potential new policies.

Banking boost | The ECB is is set to extend a key part of its pandemic relief measures by nine months to ensure lenders continue to provide credit to the economy. Banks had been lobbying for it, but the institution’s actions contrast with those of its peers in Switzerland and the United States, which allowed the leverage ratio relief measures to expire this year.

TIC Tac | Talks to resolve post-Brexit trade dispute in Northern Ireland are not progressing and lack of time, said UK Minister David Frost. He reiterated Boris Johnson’s threat to suspend parts of the Brexit divorce deal if the EU does not change its approach to controls on goods entering Northern Ireland.

Bottling pressure | The UEFA European football tournament may have just started, but there are already big losers: beverage brands. Sponsors Heineken and Coca-Cola have felt the virtual ripples as football stars Paul Pogba and Cristiano Ronaldo remove their drinks from sight at press conferences in clips widely shared online.

Card of the day

EU The long-awaited “push back” strategy against Russia makes no mention of the Nord Stream 2 gas pipeline to Germany, which has been a central dilemma for the bloc for years. The report, requested by member states ahead of a leaders’ discussion scheduled for next week, offers few potential solutions, although it acknowledges that relations with Moscow continue to deteriorate.

Today’s agenda

Every hour CET.

  • 11:00 Eurostat to publish final inflation for May
  • 2:00 p.m. Armin Laschet, the head of the German CDU and the favorite in the race for chancellor, speaks during a Bloomberg webinar. Click here for Register now
  • 2:30 p.m. Belarusian opposition leader Sviatlana Tsikhanouskaya speaks at GMF Brussels Forum
  • 3:00 p.m. US Senator Jeff Merkley speaks at the Brussels Forum
  • 4:00 p.m. European Medicines Agency holds press briefing on Covid situation
  • 4:00 p.m. Lisbon Citizen Event
  • Eurozone finance ministers meet in Luxembourg
  • The EU’s highest court is ruling in a case involving the ability under EU law of companies to defend intellectual property rights violations when copyrighted works are shared on peer-to-peer networks
  • EU climate chief Frans Timmermans participates in the European Hydrogen Forum
  • Commission approves first batch of spending plans for EU stimulus funds for Greece and Denmark

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– With the help of Zoe Schneeweiss and John Follain

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