The global recovery is continuing but its momentum has eased and is becoming increasingly imbalanced according to the OECD’s latest Economic Outlook. The failure to ensure rapid and effective vaccination everywhere is proving costly with uncertainty remaining high due to the continued emergence of new variants of the virus. Output in most OECD countries has now surpassed where it was in late-2019 and is gradually returning to the path expected before the pandemic. However, lower-income economies, particularly ones where vaccination...

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On 20 December 2021, the OECD published detailed rules to assist in the implementation of a landmark reform to the international tax system, which will ensure Multinational Enterprises (MNEs) will be subject to a minimum 15% tax rate from 2023. The Pillar Two model rules provide governments a precise template for taking forward the two-pillar solution to address the tax challenges arising from digitalisation and globalisation of the economy agreed in October 2021 by 137 countries and jurisdictions under the...

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The European Commission has today presented a key initiative to fight against the misuse of shell entities for improper tax purposes. December 22nd's proposal should ensure that entities in the European Union that have no or minimal economic activity are unable to benefit from any tax advantages and do not place any financial burden on taxpayers. This will also protect the level playing field for the vast majority of European businesses, who are key to the EU's recovery, and...

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The Commission has adopted the Multiannual Indicative Programmes (MIPs) of Global Europe setting out priority areas for cooperation with partner countries and regions around the world for 2021-27. This also includes the financial allocation for 2021-2024 (country level) and for 2021-2027 (regional level) that will support this cooperation for a total of almost €26.3 billion. The adoption of the country and regional MIPs will significantly contribute to climate actions, social inclusion and human development and migration and forced displacement...

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The priorities of France's presidency are reflected in its motto: 'Recovery, strength and a sense of belonging': recovery, to enable Europe to support the ecological and digital transitions strength, to defend and promote our values and interests a sense of belonging, to build and develop a shared European vision through culture, our values and our common history According to the speech given on 9 December 2021 by French President Emmanuel Macron to present the priorities of the French presidency, the activities...

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The EU Commission has today proposed to establish the next generation of own resources for the EU budget by putting forward three new sources of revenue: the first based on revenues from emissions trading (ETS), the second drawing on the resources generated by the proposed EU carbon border adjustment mechanism, and the third based on the share of residual profits from multinationals that will be re-allocated to EU Member States under the recent OECD/G20 agreement on a re-allocation of...

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Looking back, I would define 2021 as a year of transitions. Geopolitical changes have intensified with power politics repeatedly challenging the EU and its values. We must respond with all the determination we can muster. The pandemic has carried on longer than we imagined a year ago and the omicron variant is yet again requiring the introduction of major restrictions and threatening the recovery. Still, we know that vaccines are making a major difference. Thanks to the common purchase mechanism,...

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Today, the EU Commission issues policy guidance for a fair and inclusive transition towards climate neutrality to complement the package on delivering the Green Deal presented in July. The proposed Council Recommendation sets out specific guidance to help Member States devise and implement policy packages that ensure a fair transition towards climate neutrality, by addressing the relevant employment and social aspects linked to the transition in a comprehensive manner. The proposal pays particular attention to addressing the needs of the...

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A Japanese automobile manufacturer builds an assembly plant in Mexico. An Italian software company opens a sales office in Kenya to reach the Kenyan market with their services. A large Australian mining company acquires a smaller Angolan one for diversification. All are examples of foreign direct investment where a business decision is made to somehow take a stake or interest in a company by an investor located outside its borders. According to the latest results of our Coordinated Direct Investment Survey , and...

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