EconomyFinancialMathias Cormann, unpopular with environmentalists, assumes the leadership of...

Mathias Cormann, unpopular with environmentalists, assumes the leadership of the OECD

This Australian is the first person from the Asia-Pacific region to achieve the top position in the organization.

Former Australian Economy Minister Mathias Cormann, who took over as OECD leadership on Tuesday, is a fervent advocate of free trade, which has sparked some controversy over his position on climate change, considered skeptical.

Cormann, the official who was the longest-serving Minister of Economy of his country, became the successor of the Mexican Ángel Gurría at the age of 50 at the head of that international organization based in Paris.

Born in September 1970 in Belgium, he graduated in law in that country and is fluent in French, English, German and Flemish. He emigrated to Australia in the mid-1990s, where he entered politics.

Vice-president of the center-right Liberal Party, he ended up taking the reins of the Ministry of Economy from 2013 to 2020.

The Australian is the first person from the Asia-Pacific region to achieve the top position in the Organization for Economic Cooperation and Development (OECD) and does so in the midst of one of the worst global recessions ever recorded.

True to his reputation, the new secretary general advocated on Tuesday for the market economy and competition, which he considers “inevitable” and calls “a powerful engine of progress, innovation and improvement of living standards.”

Using cautious language, he said he wanted to establish “the best possible relationship with China.” But “we will have to defend our values when necessary,” he added during his first press conference.

On ecology, he limited himself to stating that “more and more countries promised to achieve carbon neutrality as soon as possible and no later than 2050”.

“The challenge we face is how to make these commitments a reality and achieve our goal in an economically responsible and opinion-acceptable way, without leaving anyone behind,” he added.

Dozens of environmental groups had claimed that Cormann should not have been considered to lead the OECD, citing his statements calling the goal of zero net CO2 emissions by 2050 “extremist.”

The former minister also campaigned against the carbon pricing scheme aimed at reducing emissions from Australian industry, which was repealed in 2014.

His candidacy for the post of secretary general caused surprise, although in the end he managed to unseat both Cecilia Malmström, a former European Commissioner for Trade, and eight other applicants.

It did so by adopting a greener discourse, to seduce an OECD eager to prioritize climate issues alongside economic development.

Private jet trip

He recently assured that climate change was one of the main challenges for the OECD, along with education and the “reduction of differences in fiscal policy.”

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His biggest immediate challenge will be to carry out a comprehensive reform of multinational taxation, which the G20 has entrusted to the OECD.

Discussions, which have been going on for years, have been rekindled in recent weeks by the Biden administration’s position in favor of a minimum tax rate of 15% on the profits of companies worldwide.

Despite having spent more than a decade in the Australian Parliament, where he held the Finance portfolio for seven years, Cormann is not well known in his country.

However, he enjoys notable influence in the ruling Liberal Party and was instrumental in the victory of the current Prime Minister, Scott Morrison.

During the campaign, Cormann generated some controversy in Australia when it became known that he was using an air force plane to travel to Europe and defend his candidacy.

However, the Australian government claimed that the use of such an aircraft was necessary because if Cormann had used commercial aircraft, he would have been exposed to COVID-19.

The OECD works to boost economic growth and international trade and its 38 member countries account for 60% of world economic output.

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