Business
18:06, 07-Jul-2017
G20 confronts difficult negotiations over tax, financial regulation
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As the host for 2017 G20 Summit, Germany has been pushing for measures to tackle harmful tax competition between countries and combat aggressive tax policies.
It is not an easy task since every country is looking at its own bottom-line.
Many multinationals such as Starbucks, Google and Facebook, have been caught using tax loopholes to fiddle the system whilst generating vast profits.
The European Commission estimated that member states lose between 50 to 70 billion euros a year for tax revenues.
With so many countries together everything is complicated. /VCG Photo
With so many countries together everything is complicated. /VCG Photo
Financial regulation is another issue on agenda. The US President Donald Trump is going forward with financial deregulation very aggressively. The financial lobby in Brussels is asking the EU Commission to follow.
Member states of G20 are home to two thirds of the world’s population and possess more than four fifths of global GDP. All of these have made any negotiation much more complicated than usual.