A G7 summit in Italy on Thursday will bring together finance ministers from the Group of Seven big democracies to support a European Union proposal to support the Ukraine’s war effort, according to a Thursday statement from the Italian Treasury.
Italy, which holds the G7’s rotating president, will even try to revive an global agreement on how to promote tax benefits with large firms, which the United States is struggling to adopt in Congress, the national, who declined to be named, told a press briefing.
Soon after Moscow attacked its neighbor in February 2022, the G7 frozen about$ 300 billion in financial assets. Since then, the G7 and the European Union have been deliberating whether and how to use the funds to assist Ukraine.
The G7 comprises the United States, Japan, Germany, France, Britain, Italy and Canada.
The United States has proposed seizing the possessions in their totality, but Europe has balked, citing threats to the lira and legal implications.
Prior to the meeting in Stresa, northern Italy on May 24 and 25, the official said the G7 would help the EU‘s plan to use the amazing revenues from the freezing Russian assets to gain Ukraine.
According to the official, the discussions are centered on using assets ‘ income rather than the assets themselves, adding that any decision must have the support of the EU and be supported by” solid legal bases.”
Washington has more recently suggested using the assets as collateral to provide loans to Ukraine in the face of European opposition.
The finance chiefs will carry out the preparatory work to allow the G7 leaders of government to reach a final decision at a summit in the southern Italian region of Puglia in June, according to the Italian official.
After the United States announced significant tariff increases on a number of Chinese imports this week, the official stated that the meeting’s formal agenda does not include trade relations with China.
Due to the disruptive effects they have on international trade, Italy has reservations about using tariffs.
Italy will encourage last-ditch discussions to stop plans for a global minimum tax on multinationals as a trade truce between the United States and several European countries is scheduled to expire in June.
The first pillar of that agreement aims to reallocate the rights to tax about$ 200 billion in corporate profits to the nations where they conduct business.
The official claimed that the negotiations have not advanced in advance of the meeting scheduled for next week.
