Good and bad as G7 agree global tax deal
The agreement reached on Saturday by G7 finance ministers on a minimum global corporate tax rate of 15% has encouraged those pushing for a broader deal at OECD level, while also raising concerns among critics. Some NGOs and tax equality lobby groups say the 15% rate--reduced from US president Joe Biden’s initial push for 21%--is too low to end a race to the bottom. On the other hand, French finance minister Bruno Le Maire said the G7 deal was just a starting point and that efforts would continue “to ensure that this minimum corporate tax rate is as high as possible”. Luxembourg’s finance minister Pierre Gramegna tweeted that he was “looking forward to contributing to a detailed agreement” at the OECD level in October. But The Guardian has spoken to experts who warn that the pillar one deal to tax profit exceeding a 10% margin where companies operate could, for example, let Amazon’s Luxembourg-based Europe HQ off the hook, as it only generated profit of 6.3% in 2020. Meanwhile, other tech giants are cautiously welcoming the deal, in public at least. Nick Clegg, vice president of global affairs at Facebook said the social media giant wanted the international tax reform process to succeed even if it “could mean Facebook paying more tax, and in different places.” Google spokesman Jose Castaneda told CNBC that the company hopes countries “continue to work together to ensure a balanced and durable agreement.” More news and analysis in the FT, The Irish Times, The Independent and The Wall Street Journal.
CDU passes Saxony-Anhalt litmus test
Germany’s far right Alternative für Deutschland party (AfD) failed to mount a real challenge to Angela Merkel’s CDU conservatives in state elections in Saxony-Anhalt on Sunday. The CDU, which will enter national parliamentary elections in September under the leadership of Armin Laschet, won close to 37% of the vote according to broadcaster ARD. The AfD, which had been predicted to run the CDU neck and neck in the eastern state, won around 21%. Deutsche Welle, Euronews and The Guardian have more.
Venice protest return of cruise ships
Hundreds of protestors in Venice, including a flotilla of small boats, protested as the 92,000-tonne MSC Orchestra set sail from the city’s port en route for Croatia and Greece on Saturday. The cruise ship was the first to dock after covid-19 restrictions were lifted. Campaigners are not only concerned about the global environmental impact of the large ships, but also about underwater erosion in the city. Reuters, the BBC and The Irish Times report.
United to fly supersonic
United airlines says it plans to buy 15 supersonic Overture aircraft from Denver-based aircraft maker Boom. The new planes have not yet been flight-tested and the United purchase agreement is conditional on the aircraft meeting safety standards. Overture is hyped as being capable of reaching speeds of 1,805km/h--the equivalent of Mach 1.7--meaning in could fly London to New York in just 3.5 hours. United says it wants to start commercial flights in 2029. The BBC,
Musk cancels Tesla Plaid+
Tesla boss Elon Musk on Sunday announced that the electric car maker’s much-vaunted Plaid+ model had been cancelled. “No need, as Plaid is just so good,” Musk tweeted. “0 to 60mph in under 2 secs. Quickest production car ever made of any kind. Has to be felt to be believed.” CNBC, TechCrunch and Bloomberg have more.
Bitcoin to become legal tender in El Salvador
El Salvador president Nayib Bukele has announced he is sending a bill to congress “that will make bitcoin a legal tender”. The country has agreed a partnership with digital wallet company, Strike, whose founder Jack Maller said the news is like a “shot heard ’round the world for bitcoin.” CNBC, CNN and the BBC have details.
Judge slammed for AR-15-Swiss army knife remarks
A San Diego district judge who ruled that California’s ban on assault rifles was illegal has been criticised by the state governor and gun control lobbyists. Roger Benitez in his ruling said that the “popular” AR-15 weapon was a “perfect combination of home defense weapon and homeland defense equipment”, just like the Swiss army knife. The Guardian, The Washington Post and NPR have more.
Luxembourg cleans up after storm
Many areas of the grand duchy were left cleaning up storm damage over the weekend after heavy rains and winds on Friday night left cellars flooded and debris strewn over streets. RTL has amateur footage in Hosingen that captured what looked like--but turned out not to be--a tornado, while Oberkorn recorded rainfall of 48.6 litres per square metre over a two-hour period on Friday evening.
Football: Red Lions lose to Scots
Luxembourg lost a friendly match against Scotland 0-1 on Sunday. Che Adams scored the only goal in what was the last competitive national team game to be played at the Josy Barthel stadium. The Guardian has a report.
11th great-grandchild for Queen
The Duke and Duchess of Sussex have announced the birth of Lilibet “Lili” Diana Mountbatten-Windsor, the 11th great-grandchild of Queen Elizabeth II. The baby girl, named after the family nickname for the Queen, weighed in at 3.4kg. The BBC and The Guardian have reports.
Today’s breakfast briefing was written by Duncan Roberts