France’s President, Emmanuel Macron, has suggested the need for a renewed effort to reform the global taxation system in order to fund international climate initiatives. Speaking at the New Global Financing Pact Summit in Paris, Macron expressed his support for this measure as a means to combat climate change and alleviate poverty. He emphasized that such an endeavor would require collective action rather than individual efforts.
Macron conveyed to the summit participants that this proposed global climate tax could draw inspiration from existing schemes. He highlighted France’s own initiatives, such as the prohibition of short-haul flights and the implementation of increased taxes on financial institutions and plane tickets, as potential models that could be replicated.
Although the French president acknowledged that the Organization for Economic Cooperation and Development (OECD) could serve as a suitable framework, the summit concluded without reaching an agreement. Nonetheless, in subsequent discussions with reporters, he expressed optimism about the potential effectiveness of the OECD framework, citing previous instances where it has been utilized to reform international taxation for multinational corporations.
In recent years, European Union (EU) countries have been intensifying their calls for actions they deem essential to “save the planet.” An illustrative case is Ireland’s recent commitment to cull approximately 200,000 cows by 2025 as part of their efforts to address climate change objectives.
Despite the French president’s relatively modest appeal for the global taxation system, there is a sense of optimism expressed by the finance minister, Bruno Le Maire. He informed reporters after the summit that he believes President Macron’s proposed initiatives could be implemented in the near future. Le Maire emphasized that this swift execution is essential for the success of these initiatives.
According to a Politico report, Le Maire pointed out that the urgency stems from the fact that implementing such measures typically requires a significant amount of time. On the other hand, an anonymous French government official shared with Politico that while President Macron appears confident, there is a lack of a clear plan regarding the execution of these initiatives.
Media reports in France have indicated that President Macron’s tax proposal has not garnered widespread support among French voters and may have negatively impacted his popularity. According to these reports, the proposal has seemingly boosted the electability of both right-wing extremist Marine Le Pen and left-wing extremist Jean-Luc Melenchon.