G-20 has been developed to translate the global economic system post Trump, plague | Business and Financial Issues

World economic leaders this week have made every effort to redefine the global economy in the wake of Donald Trump and the coronavirus epidemic.

With trade disputes that do not concern the 20-member finance group held during the US presidency, the first meeting of its finance ministers since the outbreak last year attempted to forge a trade agreement that has not been finalized since the season. adjust corporate taxes.

In addition to these challenges, the July 9-10 rally is expected to be a global catastrophe, which will be disrupted by the inevitable threat from new species of coronavirus. This could put their minds on the need to continue investing to support growth, amid rising inflation and oil prices which continue to rise following the end of OPEC + talks this week.

“The global economy is working together,” said Rosamaria Bitetti, an economist at Luiss University in Rome. “This is a great opportunity for the G-20 to reflect on how the epidemic has shown that in our interconnected world, the problems are global and need to be addressed together, leaving nationalism behind.”

With Italy hosting the conference in Venice as the chair of the group, a sign of favor for the former trade-offs between the continents will not be lost on the participants. They can also look up the name of the city’s fire station – La Fenice, or Phoenix – for encouragement on what they can do to bring about unprecedented problems around the world.

The danger is that the scars of the crisis that led to international conventions in the Trump administration could continue, including doubts about China.

For Bruno Le Maire, France’s finance minister, the responsibility now lies with the group to form a coalition that was reached at the beginning of the epidemic.

“The G-20 needs to show Venice that it can continue to fulfill its responsibilities and be able to provide sustainable, new and solid solutions to the problems that continue to plague the region since February 2020,” he told reporters Tuesday.

Here are some things to discuss:

Help was successful

Economic leaders can discuss efforts to deal with the financial crisis, which may include the need for continued government support and the prospect of economic growth.

U.S. finance officials told reporters on Tuesday that Secretary-General Janet Yellen had urged other countries not to take up COVID funds before it was due. He also encouraged short-term reflection on economic growth, and shared President Joe Biden’s ideas on how to spend more on labor, aid workers and green businesses.

Such reassurances also show that, especially for US officials, the economic recovery is far more urgent than fear of inflation. Similarly in Europe, countries are warning not to take immediate action and the European Central Bank is reducing fears of inflation.

Inconsistent Growth

Countries will also discuss ways to avoid major economic disparities as concerns rise over the challenges of new recovery.

Even within Europe, the eagle “could not be the same”, according to the European Commission, which this week predicted that Germany and the Netherlands would reach its peak without problems last year ahead of Italy and Spain. This is happening all over the world, which is widening the gap between countries and regions.

“The country is facing two additional challenges,” said IMF Managing Director Kristalina Georgieva in a blog post Wednesday. “It’s a very difficult time for the G-20 to take immediate action.”

Global warming

The G-20 has been struggling for a long time to agree on how to cope with climate change, and this conference, in the city’s most insecure city due to rising water levels, could be another source of controversy.

Speaking at a special climate change conference on Sunday, Yellen was quoted as saying that the US feels that private money will be needed to address the problem.

Under Biden, the US is making efforts for Europe to develop a way for companies to report more on climate change that threatens their operations. Climate change may be the subject of a G-20 discussion at the next meeting.

Company Taxes

Officials are expected to ratify international agreements between the 131 countries hosted by the Organization for Economic Cooperation and Development, which want a minimum corporate income tax rate of at least 15%, and new tax laws from the world’s largest corporations.

While negotiations are expected to continue until October when G-20 leaders meet in Rome, the first chapter in Venice will highlight another important role in the reform of the global tax system.

Negotiations could come as a result of inconsistencies such as the amount of tax that can be levied on developing countries, and whether countries can meet US demands to eliminate digital taxes once new international laws are enacted.

IMF weapons

The special rights of the artist, known as the SDRs, will also be on the agenda as the International Monetary Fund prepares the largest project in its history to help boost global investment and help emerging and low-income countries cope with rising debt.

France is forcing rich countries to reintroduce their new SDRs for Africa to raise a total of $ 100bn. To achieve this, the IMF must find a better way and countries beyond Group Seven will need to participate.