Transcripts For DW Business 20240702

World without exception is a Global Energy to information really cost of the food as well. Or is it for our coupon document free the renewables revenue, so jobs november 25th dw, the challenging china. So world wide influence a use Global Gateway Initiative aims to invest billions in infrastructure fabi on your of the kind of really competes with aging research as go over a world wide tax on 1000000000 as well. Well ask them if that plan could ever actually happen. It says database nissan robots, info and welcome to the program. Is the use response to belt and road. But as china is massive Global Infrastructure project box, its 10 anniversary. Brussels is just completing its 1st global gateway summit. The use of 60 thought, the 66000000000 yours has been placed to projects around the world so far with more to come. As the do we use rosie budget reports, bridges ports on hydro, electric dams. These are all parts of brussels latest page to compete with beijing. Its called google gateway, a part of Infrastructure Investment funds design to rival china as belts and road initiative. As make your opinion, the most attractive partner for developing economies, racing to expand from many countries around the world. Investment options are not only limited, but they all come with a lot of small print and sometimes with a very high price. Sometimes it is the environment that pays the price. Sometimes it is workers. No country should be faced with a situation in which the only option as to finance this essential infrastructure is to sell its future. As a host of World Leaders descended on brussels this week. The you signed screeds of new deals, a Renewable Energy package with bond goodish Critical Role materials contracts with the d r c. And some via the plan for fiber optic connectors in egypt. But some wonder who benefits most from this approach, which is that essentially about pushing private investment in the global south. And the problem with that private investment is its going to specific sectors which essentially europe has an interest for its green transition. A lot of it will go to large transnational corporations rather than the small and the micro industries will really should be the engines of kind of the most sustainable development, the 300000000000 euros pond for the use. Global Gateway Initiative is also dwarfed by the estimated one trillion beijing is pouring into belton road and in brussels. Many leaders stress the need for more investment left fits is, i mean, yeah. Then dvd to the is 1400000000. 00 individuals on the territory of more than 15000000 square kilometers. And we have to do every single drinking water, electricity, roads. We need to build that old. Im is the you, the member states, the whole, the private sector through blending, defend the leverage effect. We can raise much more financing the can also. So well this week somebody may have helped brussels build bridges on a competitive geo political playing field. The funding itself may be too little, too late. Rising, graduated with that report that as a rosie joins is from brussels now, rosie, whats the reaction been from lead to is gathered, why you all this week as well . Its been a really optimistic approach overall. We heard plenty of the leaders, theyre really trying to sort of sell their country as an investment destination. So for example, the Prime Minister of bangladesh gave a speech in which she was talking about her transport links and the geographic location of the country. Hard that could you could incentivize and say investors. Similarly, we heard from lucky sol present of senegal. We heard not report talking about the abundant potential resources, clean Energy Potential of the african continent. Of course, thats important. Those leaders because the summit has also included private sector investors. However, there has been a lot of criticism of this initiative over the past couple of years since it was 1st the nice, but its perhaps a bit unclear that there isnt a clarity on the government structures. The results of criticism early on that it was just existing funding being moved about in budgets. And of course, thats something that leaders and gathers and process will of who has come from the summit is that there is a clear path note for investors because of course, the process really wants to get this scheme of the growth. And we heard that from the leaders that were gathered in process, they really need also private Sector Investment as well as public funds. Weve talked a lot about how this is the reading, trying to rival china on global in infrastructure. I mean, is it succeeding in doing that . Yeah, well thats where the, the worst kept secret and brussels. You will never hear the official saying on the record. Theyre trying to rival china, but its really there in the background of every speech there make you. Weve heard that from earth level underline saying, some countries offer loans, but with Strings Attached so that you cant really compete when it comes to the financial muscle. Weve seen that with the 300000000000 euro approach, but its much less than what china has been offering in terms of its own built and wrote initially for what brussels is really trying to do is saying this is a values based approach that its offering a different way and of course the, the, the implications there, the unspoken accusation is that china has essentially gotten countries into a debt trap through its own built and roads initiative, investments. All that somebody of course it facing with an eye. And this gathering, of course, comes just the we got to china with celebrating belts and roads. How did the 2 gatherings combat a quite a different mood, at least 2 gatherings. So its important to say that some of the countries are represented in both of these big initiatives and particularly important to say that they include some e u countries. For example, the home during Prime Minister victoria yvonne was about me to get china. Im was picture checking hands, just let him youre preaching, which is really cool. Is a bit of a store here in brussels. Of course the you has as, as slots a slew of sanctions on brush over its invasion of ukraine. So the geopolitics, i run goal this very clear to see both here in buffalo, the summit, of course, also in china when it comes to belt and roads initiative. And these 2 rivals schemes are exhibited in brussels for us. Thank you very much. I. Lets take a look at some of the other Global Business stories that are making the news. European central bank is broken and the streak of Interest Rates rise is keeping them on hold for the 1st time since july 20, 2210 Interest Rate hikes in a row merit of the Central Banks around the world. And with design to cub inflation, which is more than ha, in the past year, the us economy heated up in the 3rd quarter of this year with gdc gravitating 4. 9 percent government agents as a resilient job market with boosted consumers spending the pump to g d, p is likely to ease phase of the us something into recession that it tries to bring down inflation. Now, government could raise up to 250000000000. 00 annual annually if they impose a global tax on billy. And as thats according to the latest report from independent research group, the u tax observatory, it says that 1000000000 has currently pay less personal tax them tax as more modest means, because they can talk their wealth and Shell Companies as a way to avoid income tax. They claim that a 1000000000 a tax could raise financing for the Energy Transition and payoff debt wrapped up during the content. But we can now speak to gabriels oakland who is one of the authors of the e u tax observatories report. Thanks a lot for being with us. I guess we should start with the issue of why 1000000000 as all paying so little compared to the wealth in tex . A yes indeed, thats one of the Main Findings of the repulse. When you look at the global b and theres the tax payments, indigo to income tax plus whatever taxes when they exist, add up to only 0 to 0. 5 percent of the width. Very little. The reason for that is that when youre very well, fee is very easy to structure your wealth, such that your wealth generates very little taxable income. Weve seen that in the west, in 2021 with the regulations from the us media proclivity care that showed how narrows night. Jeff bezos are, you know, most often times pay 0 or most 0 in indeed your income tax. But the same problem exists in many other countries. So whats the tax observatories proposition, how you can actually change that . The most logical way to address the problem would be to have a minimum taxes on a global deal narrows express directly as a function of wealth. So we propose to create a global minimum of west tax of 2 per cent meaning being and as would have to pay at least 2 percent of the wealth in texas. Each year, less than 20000. 00 people wouldnt be Effective Group id because or less than 3000. 00 b b o narrows. But because the very rich, this tax could generate a lot of tax revenue, we estimate that it could generate almost 250. 00 an additional tax Revenue Growth to why a wealth tax rather than an income tax like everyone else is paying. Because for a very rich people, the notion of income is not very well defined. They can structurally that wealth such that such as to rebuild very to income. But the notion of wealth on the contrary is with very well defined. If youre deal now i means that the total market value of your assets. Net of yall, debts is more than wouldnt be young daughter or something, a wouldnt be an euros. Thats why and its critically important. The minimum tax on video now should be expressed as a function of width. But its what is what i want to get down to is how realistic this proposal actually is. I mean, if we look at the level of minimum corporate tax, for example, yes. A 140 countries have set that, that route for it. But as its been moving through that process, its been more down somewhat and its so come, a struggle is started off as a struggle. Why do you think the, the, your taxes, any more realistic . So 1st of all, its important to acknowledge that we know that global, called the 19 minimum tax rates, all possible because in 2021 more than 140. 00 countries agreed on an email tax of 15 percent from the international companies. Now youre absolutely right and you need, this is one of the Main Findings of the repo that these tax has a impulse and problems. It has loopholes that have been cry. Youre the introduced seems twins 21. Thats why we think its important to explain how with minimum tax and via narrows i should wear. But the point i want to make thats most important is i think we can replicate whats been done from 19 nationals from the west individuals. It should be the priority on the International Tax refund, the agenda for the coming years. And while at the same time avoiding the controls of what was done, a Family Connection horse and the main program. The main from the main reason where the agreement from international is, is not satisfactory, is because we started from the prime is that, that should become sense. So that definitely be unanimity that for countries for degree. If you do that, it amounts to beginning of the to a power tax havens. I think a bit to process is for some countries on groups of countries to unity that trudy implement the minimum tags on the condition of those. Ill be good now and then dishes one, and then these can pave the way to make me fall and be shows global agreements. A fabulous like man from the new text observatory there. And thats all for this edition of the to be business until next time. Take the lithium from germany volk and Energy Resources wants to use Geothermal Energy to mind. This pressure for white gold and for the 1st time, anywhere in the world, an auto make or hold to state in a lithium company, in germany on its way to ending its dependency on rom, resources made in germany. Next on dw, most stuff have come all out to the father of the turks. You created a modern state, but he was reforms remain controversy on to this day. Who was the man behind dispersion, revered by some cursed by others, altura, the father of modern turn. In 45 minutes on d w, the words people have to say, thats why we listen to every weekend on d w. The of the hollywood actors have been striking since mid july in what is become the industrys most historic strike and an end doesnt appear to be in sight. Now thats the spite actor is wanting to negotiate with tv and production studios. But what is the strike really about . Were going to answer that and definition of made the, the use business magazine. And here