Options to magnify the impact of the Special Drawing Rights Allocation through voluntary channeling. One of the most significant measures introduced by the International Monetary Fund in response to the global pandemic was the recent historic allocation of Special Drawing Rights, or SDRs. The challenge now is to ensure this distribution is redirected—or channeled—to where the need is greatest. To that end, we are exploring three options to enable more resilient and sustainable economic futures for the poorest and most...

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Today, Executive Vice-President Frans Timmermans, who leads the EU's international negotiations on climate, and Special Presidential Envoy for Climate John Kerry hosted a virtual ministerial meeting to mobilise further support for the Global Methane Pledge. The co-convenors and Executive Director of the United Nations Environment Programme Inger Andersen affirmed the critical importance of rapidly reducing methane emissions as the single most effective strategy to reduce near-term global warming and keep the goal of limiting warming to 1.5 degrees Celsius within...

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Speech by Vice Chair for Supervision Randal K. Quarles at The Structured Finance Association Conference, Las Vegas, Nevada | Now that business travel has started to pick back up as we emerge from the COVID event, a prosaic but insistent problem has reappeared: what to read on a long plane flight. Like most of you, I try to get some work done—but, also like most of you, out of an amalgam of security concerns and indolence, I often don't succeed....

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Major reform of the international tax system finalised today at the OECD will ensure that Multinational Enterprises (MNEs) will be subject to a minimum 15% tax rate from 2023. The landmark deal, agreed by 136 countries and jurisdictions representing more than 90% of global GDP, will also reallocate more than USD 125 billion of profits from around 100 of the world’s largest and most profitable MNEs to countries worldwide, ensuring that these firms pay a fair share of tax wherever...

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MEPs discussed solutions to the current energy price hikes as well as new tax avoidance revelations during October's first plenary session. Energy prices Parliament approved an update of the selection rules for energy projects eligible for EU funding to support making cross-border energy infrastructure more sustainable. In a debate with Energy Commissioner Kadri Simson, MEPs stressed the urgent need to support vulnerable households in the EU faced with record high gas and electricity prices. Tax revelations MEPs discussed the Pandora papers revelations, documenting global tax avoidance and tax...

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Main results EU environment ministers met in Luxembourg to exchange views on the Fit for 55 package, prepare the COP26 climate summit and discuss the new EU forest strategy for 2030. The Council adopted its position at first reading on modifications to the Aarhus Regulation. Ministers also discussed the current surge in energy prices. COP26 climate summit Ministers started the meeting with a discussion on the preparations for the United Nations Framework Convention on Climate Change (UNFCCC) meeting to be held from...

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Ending the health crisis and addressing its immediate fallout remains the top priority, but governments would also benefit from committing to fiscal responsibility. From the outset of the COVID-19 pandemic, governments have extended massive fiscal support that has saved lives and jobs. As a result, public debt has reached a historic high, although it is expected to decrease marginally in the next few years. These developments raise questions about how high debt can go without being disruptive. Commitment to budget discipline and...

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Humans should supervise AI systems and algorithms should be open Ban private facial recognition databases, behavioural policing and citizen scoring Automated recognition should not be used for border control or in public spaces To combat discrimination and ensure the right to privacy, MEPs demand strong safeguards when artificial intelligence tools are used in law enforcement. In a resolution adopted by 377 in favour, 248 against and 62 abstentions, MEPs point to the risk of algorithmic bias in AI applications and...

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A key question is what combination of events could cause persistently faster price gains. The economic recovery has fueled a rapid acceleration in inflation this year for advanced and emerging market economies, driven by firming demand, supply shortages, and rapidly rising commodity prices. We forecast in our latest World Economic Outlook that higher inflation will likely continue in coming months before returning to pre-pandemic levels by mid-2022, though risks of an acceleration do remain. Policymakers must walk a fine line between patient support for...

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Sustainable investment funds need to be scaled up to support a successful transition to a green economy The transition to net-zero greenhouse gas emissions requires unprecedented change by companies and governments, as well as additional investment of as much as $20 trillion over the next two decades. Strong fiscal policies, complemented by a broad range of regulatory and financial policies, will be necessary to facilitate the green transition. The world’s $50 trillion investment fund industry, especially funds with a sustainability focus,...

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