Finance Ministers Meet To Discuss Global Tax Plan, Pressure On EU Holdouts

Finance ministers and central bank governors from the G20 nations meet today and tomorrow in Venice, Italy, with efforts to reach an agreement on the establishment of a global minimum corporate tax rate at the top of the agenda.

• While the G20 nations are on board with the deal spearheaded by US Treasury Secretary Janet Yellen and the OECD, three EU members that have used minimal corporation tax rates to draw in investment in recent years - Estonia, Hungary, and Ireland - have all so far refused to acquiesce to the deal.
• Argentina has previously questioned the proposal's fairness, while India and Indonesia have raised doubts, but they are not seen as significant obstacles. For the EU (a member of the G20) to approve the deal it would require unanimous approval among the member states. As such, each of the holdout countries can expect significant political pressure applied to come into line with 130 other nations worldwide.