Combating inequality through regulated and more equitable globalization

The current economic and multilateral context is troubled. International financial risks are accumulating, including persistent trade tensions, uncertainties around Brexit, a slow-down of growth in certain regions, and levels of public and private debt that remain high, including in developing countries.

The Finance Ministers will meet in Chantilly on 17 and 18 July.

Two goals

Maintaining a solid and resilient international financial system

Fostering a fairer, more equitable globalization

Maintaining a solid and resilient international financial system

In this context of increasing risks, discussions in the G7 Finance track will focus on global financial governance, a subject on which G7 coordination is essential even if the issue is of concern to the international community as a whole.

Progress is also expected on cybersecurity in the financial sector, particularly as regards coordination in the face of cyber attack risks.

Combating inequality through regulated, fairer and more equitable globalization

In line with the efforts of the Japanese G20 Presidency this year, cooperation between the G7 countries is essential to build a fairer globalization. France will continue to advocate this collective effort, which will help combat inequality through four tangible goals:

• Greater equality of businesses when it comes to tax

Taxation is central to national solidarity and is a necessary contribution to the funding of public services. Yet the evasion strategies of certain businesses mean that the rest of the national community bears the weight of this solidarity in their place. The French G7 Presidency is an opportunity to step up the fight against the phenomena of tax optimization and tax havens. The G7 can play a role in generating great momentum at the G20 and at the OECD, so that their work gives rise to an international consensus as quickly as possible.

• More widely shared international rules for responsible finance

Criticisms of globalization relate largely to the fact that competition between companies and countries is not based on the same rules for all. That results in unequal market access and undermines the competitiveness of the States that apply the strictest standards. The French G7 Presidency will work to remedy this inequality between actors, particularly around the themes of foreign investment, export credit policy, and sustainability and transparency of external financing, with a particular focus on those granted to poor countries. These rules are needed to govern competition between actors granting loans or guarantees and for the countries that receive these investments, which are vulnerable to unsustainable debt levels.

• Regulation of competition adapted to the digital transformation

Combating inequality also means preventing the risk of competition between companies being distorted by the specificities of the data economy. Certain digital platforms can accumulate so much data that they raise questions as to dominant position issues and entry barriers, for example.

• Redesigning the means of reducing inequality within G7 countries

To contribute to reducing inequality within our countries, the French G7 Presidency will work to improve monitoring: gender equality, pay transparency, in particular to promote equality in salaries, but also equality of opportunity (education, training, mobility, territorial equality, etc.) and social safety nets (redistribution).