|The Biden administration approach is defined, I understand, by the President's concern that after the 2008 financial crisis, President Obama compromised too much on the size of the economic rescue package. (Photo by= Getty Images)|
[Asia News = Reporter Reakkana] The deal struck on tax understandably grabbed most of the attention at the G7 Finance Ministers' meeting, before this week's Leaders' Summit in Cornwall, according to BBC. This should transform the international tax treatment of multinationals, tax havens, and low tax jurisdictions.
However, perhaps the most important decision right now, across the world, is how to manage the withdrawal of the massive pandemic economic support packages. And that’s why the economic intervention of the US at this meeting and at the upcoming Cornwall summit is of considerable importance. The message from Treasury Secretary Janet Yellen here in London - which will be echoed by US President Joe Biden in Cornwall - is that all G7 nations, including the UK, should not even be talking about withdrawal of support. "G7 economies have the fiscal space to speed up their recoveries to not only reach pre-Covid levels of GDP but also to support a return to pre-pandemic growth paths," said Secretary Yellen in a speech on Saturday.
Ms Yellen emphasized to International Monetary Fund (IMF) projections showing that the US would be the first G7 economy to return to its pre-pandemic size, thanks to the vaccine rollout and President Biden's giant stimulus plans.