US Treasury Secretary Janet Yellen will make her third trip to Europe to push a slew of White House global economic priorities, including corporate tax cuts, climate financing, preventing new pandemics, and easing inflationary supply chain disruptions.
She will make the pitches at Group of 20 meetings in Rome and the United Nations Climate Change Conference 26 (COP26) in Glasgow over the next week, with an interim stop in Ireland to thank the low-tax country for its hard-fought decision to support a deal for a 15% global minimum corporate tax.
Yellen arrived in Rome late Wednesday, a day before Biden, for bilateral meetings and to attend a G20 joint finance and health ministers meeting on Friday, the day before the leaders summit this weekend.
She will call on the finance and health groups to better prepare for the next pandemic by establishing a new disease detection and coordination forum as well as a separate financing mechanism. She outlined the proposals in a letter to G20 colleagues, co-signed by Indonesia's finance minister, Sri Mulyani Indrawati, who will chair the G20 in 2022.
Tax Deal Benefits
Yellen will meet with government and business leaders in Dublin on Sunday and Monday to discuss the tax agreement, which will affect many US technology companies that were attracted to Ireland by its low 12.5% tax rate.
Treasury officials say they are confident in the Biden administration's ability to implement the global tax agreement using a Democratic-only budget measure, despite the fact that a deeply divided Congress is struggling to agree on Biden's massive spending bill.
US Senate Democrats have proposed a new, uniform 15% corporate minimum tax to complement a proposed tax on unrealized gains from billionaires' assets.
At COP26 in Glasgow on Nov. 2-3, Yellen will emphasize using multilateral development banks to mobilize more private sector investments in carbon abatement and using tax and economic policy incentives to accelerate the transition a lower carbon economy, Treasury officials said.
She will also tout work done by the U.S. Financial Stability Board to incorporate climate risks as an "emerging threat" to financial stability in the regulatory agency's every day work.