Fin Min & CB Gov Meet To Start In Brazil, FT Report Divisions On Global Tax

The G20 Finance Ministers and Central Bank Governors meeting gets underway later today in the Brazilian city of Sao Paulo. Follows on from the foreign ministers’ meeting in Rio de Janeiro last week and is intended to prepare for the leaders’ summit taking place in November. Brazil is set to present a short closing statement, limiting the prospect for geopolitical divisions among members over the wars in Ukraine or Gaza. Instead, Brazil wants the meeting to focus on “ending inequality, reforming international taxation, addressing sovereign debt distress and working toward sustainable development.”

• The FT is reporting that Brazil's aim of getting reforms on international taxation may already be under threat. FT: "The enactment of the first “pillar” of the OECD-brokered reforms, which would make big tech groups and multinationals pay more tax in the place they do business, has stalled in the US amid opposition from Republicans. Developing countries have meanwhile attempted to shift international tax negotiations from the OECD to the UN, where they would wield more influence, further complicating the talks over implementation."
• The draft statement seen by a number of outlets is notable by its brevity and lack of any colour or notable language, with Reuters reporting "The draft communique, [...] also said the likelihood of a soft landing in the global economy has increased, but uncertainty remains high.Advertisement · Scroll to continue"Risks to the global economic outlook are more balanced," with faster-than-expected disinflation and more growth-friendly fiscal consolidation underpinning growth, the draft said."