World Biz
G20 pledges to work together to tax ultra-rich
G20 nations have agreed to work together to make the super-rich pay their taxes, but stopped short of a more substantial deal, according to a declaration adopted Friday after a meeting of finance ministers in Rio de Janeiro.
The thorny topic of tackling tax-dodging billionaires dominated the two-day meeting in the Brazilian city, which will host the next G20 summit in November.
The initiative is a key priority for Brazilian President Luiz Inacio Lula da Silva, who heads this year’s grouping, which includes the world’s major economies, the European Union and the African Union.
Lula was hoping for a minimum tax on the moneyed elite, but the final statement represents a compromise on a topic that divided member states.
“With full respect to tax sovereignty, we will seek to engage cooperatively to ensure that ultra-high-net-worth individuals are effectively taxed,” said the statement.
“Wealth and income inequalities are undermining economic growth and social cohesion and aggravating social vulnerabilities.”
Brazil’s Finance Minister Fernando Haddad said that “from a moral point of view it is important that the twenty richest nations consider that we have a problem, which is to have progressive taxation on the poor and not on the rich.”
The United States and Germany dismissed the need for a global deal on taxing billionaires, an initiative which is backed by France, Spain, South Africa, Colombia and the African Union.
– ‘Time to go further’ –
International Monetary Fund chief Kristalina Georgieva hailed the G20’s position on “tax fairness.”
“The shared vision of G20 Ministers on progressive taxation is timely and welcome, as the need to rebuild fiscal buffers while also attending to social and development needs involves difficult decisions in many countries,” she said in a statement.
French economist Gabriel Zucman, who authored a report on taxing the rich, welcomed the fact that “for the first time in history, there is now a consensus among G20 countries that the way we tax the super-rich must be fixed.”
“Now it is time to go further,” said Nobel Prize-winning economist Joseph Stiglitz on Friday, urging heads of state to coordinate minimum standards by November.
“The climate crisis is expected to cost trillions of dollars every year and it is outrageous to expect that the regular taxpayer should pay for it, while the super-rich evade taxes,” said Camila Jardim of Greenpeace Brazil.
On the sidelines of the thorny tax discussions, US Treasury Secretary Janet Yellen and Brazilian Economy Minister Haddad announced on Friday the signing of a partnership on climate protection.
Founded in 1999, the organization was originally focused on global economic issues but has increasingly taken on other pressing challenges — even though member states do not always agree on what should be on the agenda.
Divisions within the G20, of which Russia is also a member, have made drafting a joint communique at the outcome of meetings a challenge.
Three texts were published by Brazilian authorities: a joint final communique, a document on “international cooperation in tax matters” and a separate communique from Brazil on geopolitical crises.
The final communique makes no mention of the wars in Ukraine and Gaza, but simply refers to “wars and the escalation of conflicts” as risk factors for the global economy.
The Japanese owner of 7-Eleven said Friday it had rejected a takeover bid from Canadian retail giant Alimentation Couche-Tard, saying the proposal “grossly undervalues” the company.
The proposed purchase of Seven & i Holdings would be the biggest ever foreign takeover of a Japanese firm and combine 7-Eleven, Circle K and other brands across Asia, North America and Europe.
As the world’s biggest convenience store chain, 7-Eleven operates more than 85,000 outlets globally.
Although the brand began in the United States, since 2005 it has been wholly owned by Seven & i.
A letter from the Seven & i board to Alimentation Couche-Tard (ACT) said it was open to “engaging in sincere discussions should you put forth a proposal that fully recognises our standalone intrinsic value”.
“We do not believe, for several critical reasons, that the proposal you have put forward provides a basis for us to engage in substantive discussions regarding a potential transaction,” it said.
ACT operates more than 16,700 outlets in 31 countries and territories.
Its purchase of Seven & i would be the biggest ever foreign takeover of a Japanese firm and create an international convenience store behemoth combining 7-Eleven, Circle K and other brands across Asia, North America and Europe.
Seven & i said ACT had offered $14.86 per share in cash, which roughly matches its market value of $39 billion.
But the board’s letter called the proposal “opportunistically timed” and said it “grossly undervalues our standalone path and the additional actionable avenues we see to realise and unlock shareholder value”.
It also raised regulatory concerns.
“Your proposal does not adequately acknowledge the multiple and significant challenges such a transaction would face from US competition law enforcement agencies,” it said.
A quarter of 7-Eleven stores are found in Japan where they are a beloved institution, selling everything from concert tickets to pet food and fresh rice balls.
Seven & i Holdings’ other businesses include a major supermarket operator, restaurant chain Denny’s, and Tower Records — a once-popular US record store that went bankrupt.
Seven & i has reportedly asked the Japanese government to designate parts of the company as “core”, which would make a takeover more difficult.
Brands with the “core” rating in Japan include manufacturers in the nuclear, space, rare earths and chip industries, as well as cybersecurity and infrastructure operators.
The Canadian firm, however, is confident that it can have its way.
CEO Brian Hannasch told an earnings briefing in New York on Thursday that Couche-Tard could “even consider a higher leverage if needed”, indicating it has the capacity to raise more funds, according to Nikkei Asia.
“We have the solid and robust balance sheet,” Nikkei quoted Hannasch as saying.
Shares in Seven & i were down 1.9 percent in Tokyo on Friday.
France’s arrest of Telegram chief Pavel Durov has raised fears in Russia that the popular messaging app — used both by the Kremlin and its opponents — could be blocked, depriving them of one of the last sources of critical, uncensored news.
Since the start of its offensive in Ukraine in February 2022, Russia has cracked down on dissent and protest, leaving Russians without independent news outlets or access to Western social media such as Facebook, Instagram and X, formerly Twitter.
In that climate, Telegram — which was itself blocked for a period by the Kremlin for refusing to cooperate with Russian law enforcement agencies — has become one of the last bastions of free speech and uncensored information.
Moscow now fears for the fate of the messenger and its Russian-born founder Durov, charged late August with failing to curb extremist and illegal content on the platform.
Though he has been released on bail, he cannot leave the country and the Kremlin has warned France against turning the case against him “into political persecution.”
Durov’s arrest is not the only headache the privately-owned service faces.
The European Commission is also investigating whether Telegram has more EU users than claimed and must therefore comply with more stringent rules.
– ‘For all Russians’ –
In Russia, Telegram channels widely cover subjects that are otherwise strictly censored in state media.
That includes everything from front-line reports of the conflict in Ukraine to trials of Kremlin critics and manifestos dispatched from political prisoners.
The most popular channels have millions of subscribers.
The Kremlin, government ministries and regional governors also use Telegram as their go-to public communications tool.
“Telegram is a very practical and reliable messaging service for all Russians, regardless of their political opinions,” said Alexei Venediktov, head of the Echo of Moscow radio station, blocked in Russia after its criticism of the Ukraine offensive.
The messaging service “is considered independent of the Russian state,” the veteran journalist — who has over 200,000 subscribers there — told AFP.
Blocking Telegram would be equivalent to “a measure of censorship,” he said.
– ‘Main source of information’ –
Telegram’s popularity has grown steadily in Russia throughout the Ukraine conflict, after Russia blocked access to Instagram, Facebook and X, as well as the websites of several opposition media outlets.
It is the fourth most popular online service, ahead of YouTube and the Russian social network VKontakte, according to a study by Russian media research group Mediascope.
It is also heavily focused on news. Two-thirds of its Russian readers prefer to follow political and news channels, with only six percent preferring entertainment or cinema, for instance.
Mila, a 45-year-old psychologist, said she started using it after Facebook was blocked and she now subscribes to some 80 Telegram news channels. She also uses it to communicate privately with friends who are against the offensive in Ukraine.
“Today, it is my main source of information. If Telegram stops working, it will hurt me a lot,” Mila told AFP, speaking on condition her full name not be used.
Naida, a 56-year-old logistician said she trusts Telegram more than other messaging services.
“And all the news is there, you don’t need to have a VPN on all the time,” she said.
Telegram is now “the main source of information” for those seeking independent views, said political scientist Tatiana Stanovaya of the Carnegie Russia Eurasia Center.
“Telegram has no alternative” in Russia, she said, adding the free flow of information on the service is a throwback to before President Vladimir Putin began to crack down hard on dissent.
– Battlefield communications –
Amid the conflict in Ukraine, the platform has also become a key military communication tool.
Both Russia and Ukraine warn their populations of incoming air attacks via Telegram posts, while their armies use it to communicate and coordinate internally.
“Telegram has almost become the main way of commanding units on both sides of the front,” said Mikhail Zvinchuk, a former military officer whose Telegram blog on the conflict, Rybar, has more than 1.3 million subscribers.
Pro-Kremlin Russian journalist Andrei Medvedev also said Telegram was “the main messaging service” of the conflict.
“It is an alternative to the secret military communication system,” he said.
Thanks to its broad appeal across the political spectrum, the fate of Durov and the implications for the site have become a rare point of unifying concern.
Russian opposition politician Ilya Yashin, recently released as part of a historic prisoner exchange with the West, is among those who have taken Durov’s side.
“I do not consider Pavel Durov a criminal, and I hope that he will be able to prove his innocence,” Yashin said.
United Nations (UN) Secretary-General António Guterres has pledged the UN’s full support to Bangladesh’s interim government in its efforts to restore an inclusive and prosperous democracy. In a message directed to Chief Adviser Prof Dr. Muhammad Yunus, Guterres expressed his best wishes following Yunus’s assumption of the interim government’s leadership and lauded the efforts to bring stability and organize parliamentary elections in Bangladesh.
“Bangladesh is at a pivotal moment in its history,” Guterres remarked. “The United Nations is fully committed to supporting the efforts towards an inclusive and prosperous democracy. We are ready to work closely with your government and provide any necessary assistance through the Resident Coordinator and the United Nations Country Team to benefit the people of Bangladesh.”
Guterres emphasized that during this transitional phase, Prof Yunus’s leadership will be critical in ending violence, ensuring accountability, restoring law and order, and steering the country towards democratic elections.
He also underscored the importance of adopting an inclusive approach by the interim government, highlighting the need to consider the voices of youths, women, minorities, and indigenous communities.
Additionally, the UN Secretary-General urged the interim government to ensure the protection of all citizens, particularly minorities, and expressed concern over the situation of Rohingya refugees. “I strongly encourage you to safeguard the wellbeing of Rohingya refugees, especially in light of the worsening situation in the Republic of the Union of Myanmar,” he stated.
