Under the auspices of the OECD, 137 countries (as of 28 December 2021) have reached an agreement on a fair allocation of taxing rights and a global minimum effective tax at a uniform tax rate of 15%. This is a genuine revolution in international tax law. The basic approach was approved by the finance ministers of the 20 leading advanced and emerging economies – the G20 – at their meeting in …
Financial markets International debt strategy and debt restructuring
Many emerging and developing countries have bilateral debt with the German government. One of the German Finance Ministry’s responsibilities is to ensure that these countries service their debt as agreed. If countries run into financial difficulties, it is often necessary to explore whether and how the debt can be restructured or even cancelled.
The latest meeting of G7 finance ministers and central bank governors took place in London on 4–5 June, with a focus on “Build Back Better”. This was the first in-person Finance Track meeting under the UK’s G7 presidency.
Climate action Green federal securities
Climate action is a priority. To boost sustainability in financial markets too, the German government is issuing Green German Federal Securities. This will inject momentum into the sustainable bond market as a whole.
Financial markets Launch of the Zukunftsfonds
The German federal government is providing an additional €10 billion for an equity fund for technologies of the future (Zukunftsfonds, or “Future Fund”). The fund will primarily benefit start-ups in the growth phase with high capital requirements. Today, former Federal Minister of Finance Olaf Scholz and Federal Minister for Economic Affairs Peter Altmaier have tasked KfW with the execution and …
Financial markets More “bite” for the Financial Supervisory Authority
Former German Finance Minister Olaf Scholz wants to reform the Federal Financial Supervisory Authority (BaFin) fundamentally to make it more flexible and effective. In particular, BaFin will be given the authority to focus more heavily on preventive action and investigate suspicious cases more swiftly and efficiently as part of financial reporting enforcement.
Financial markets Combating financial reporting fraud and strengthening controls over financial markets
Listed companies need to be more stringently controlled. On 7 October, the Federal Ministry of Finance presented the federal cabinet with an action plan to combat financial reporting fraud and to strengthen controls over capital and financial markets, which it drafted in cooperation with the Federal Ministry of Justice and Consumer Protection. Draft legislation will be presented shortly with the …
Federal property Principles of Good Corporate Governance
Part I: The Federation’s Public Corporate Governance Code
Part II: Guidelines for active management of companies in which the Federation has a holding
Financial markets Sustainable finance
The COVID-19 pandemic and climate change highlight how important the United Nations’ 17 Sustainable Development Goals (SDGs) are to economic growth and financial market stability. SDG 3 aims to ensure healthy lives for all, while SDG 13 focuses on climate action.
Financial markets Developing the Capital Markets Union
Olaf Scholz, former German Finance Minister, Wopke Hoekstra, Minister of Finance of the Netherlands and Bruno Le Maire, Minister of Economy and Finance of France, received the “Savings and Sustainable Investment Union” report by the Next Capital Markets Union High-Level Group on 9 October 2019. They thanked the Next CMU Group for their high-quality work and welcome the ambitious recommendations …