find the headline. what is the heart of the story? why does it matter? what impacts focus if you weren't the customer the noise to get to the truth. my name is tara kelly and i work with the. the taxman is coming a 50 percent minimum tax on multi nationals. that's what the g 7 finance ministers agreed on. but our 15 percent enough and who else needs to be on board to make this a global minimum tax go to london and frankfort for. also coming up, bush opens a state of the conductor factory in germany today in a bit to make europe less dependent on the ation chips make. welcome to dw business

. i'm monica jones and berlin. good to have you with us historic and ground breaking. now there's no shortage of perla tis in the reporting on a deal reached by g 7, finance ministers over the weekend. so what's the 1st all about? well, the ministers agreed to a minimum tax of 15 percent for multi nationals, or at least they agreed to further discuss the details of such attacks at the g 20 next month. it's a start and it could go a long way toward addressing the uneven way in which businesses are charged around the world. just have a look at the situation. currently, cooperation operating in japan has to pay the highest level of taxes at 31 percent that followed by germany. in the middle of the pack, we have the united states and the united kingdom and with much lower rates, we have switzerland and ireland at the bottom there were corporations pay just $12.00 and a half percent. a key re why it's the you base for firms like facebook and apple,

the united states recommendation of a 15 percent global minimum, which has just the support of the g 7 finance minutes. this is still low and not everyone is on board. i really consider this historic achievement. this is the breakthrough we work for. see, the nicholas is still a g 7. finance ministers have reached a historic agreement to reform to global tax systems. for too long multinational, including some of the world's biggest tech companies, have avoided paying their fair share by incorporating in tax havens like islands, switzerland, even as the lion's share of their income stems from other countries. the group of 7, consisting of the united states, canada, germany, britain, france, italy, and japan have agreed to a minimum tax of 15 percent and efforts to end the decade long race to the bottom. that has seen some smaller countries slash their tax rates,

to get companies to headquarter in locations, not often a representative of their business. according to the plants, the internet giants should also pay taxes where they do business and not only where they headquarters are located. islands, finance minister pascal donahue, comment and a twitter saying it is in everyone's interest to achieve a sustainable, ambitious, and equitable agreement on the international text architecture. others, however, have criticized the agreement for accepting to lower tax rate. after all lending take giants, get away with a bill. not far from the absolute minimum they have been paying for years of a more i'm joined by alex comp, and he is an economist, the chief executive ed tech justice network at johnson and london. and franco to a joint body, w chelsea, delaney who keeps an eye on the trading floor there. hello to both of you. and i'd like to start with you alex,

because some say that this proposed tax is way too low. all those talk of an historic deal. the truth usually lie somewhere in between. what do you say? yeah, what historic is the narrative shift away from the idea that there is some value in countries competing with each other on taxes and talk to corporation. and you know, i'm at yelling has said very forcefully to enter the race to the bottom because we'll lose from the race to the bottom. but in terms of what they've actually delivered so far, this is very questionable. firstly, the 15 percent rate is far too low. although it is an effective rate, so it doesn't compare with the headline rate that you showed, you know, the problem with island is not that it's 12 and a half percent. headline rate is that the effective rate being paid by us multi nationals is less than 2 percent. should bring that up to 15. really a big deal. we think that was about $275000000000.00 a revenues additional revenues each year on the table. but the other issue is the

distribution at the moment this early cd proposal privileges the headquarters countries who are of course, all of the cd members, mainly g 7 members. so the g 7 would take more than 60 percent of those additional revenues. and that's clearly untenable, is lower income countries after all, who are losing the bigger share of that. we'll see exactly, and that's whether you 20 come in. we'll explore them just a moment. what you said earlier about the, the huge increase in tax for tax companies. for example, in ireland. chelsea. i mean that's the future's actually dipped on the g 7 tax agreement. the listening to that is quite clear. mean seems to be bad news for the tech fund. well, i would say that actually the market reaction has been a little bit underwhelming. we haven't seen really significant sell off in stocks, particularly the big tech stocks that are really targeted by this proposal. this morning. us futures for the nasdaq are, are looking down a little under half percent also for apple, facebook, amazon,

all of these companies down a little bit, but not too dramatically yet. i would say sort of goes to to what alex is talking about. there are still a lot of details to be worked out. the 15 percent tax rate is as much lower than the original 21 percent tax rates divided administration that had been proposing. so i think a lot of investors in the companies themselves are looking at this proposal and saying this is actually may not be bad bad for us in the end. anyone hearing well, yeah, there are a lot of countries in europe who have been pushing for this for several years. germany is one of them with a high tax rate. this could really help businesses here in germany that, that feel that they've been made uncompetitive by these very low taxpaying companies like amazon, but even the tech try and themselves like amazon and facebook and apple say that they're actually in support of this proposal as well. because what they want it's

clarity about what international tax rolls are going to be. we've seen countries really splitting up and, and diverging, and posing all of these unilateral taxes in the past couple of years. and so they say that a multilateral tax agreement would actually be good for them. right, well, so, i mean, alex, are you already mentioned? i mean that is like right now the g 7 with the benefits, but they still need to get the approval of the whole d 20. that could be a very tall order. china already talking about a practical approach that shows inclusiveness doesn't sound like you fauria to me. so what would be, let's say, a fair tax steel globally will it all proposal for minimum effective tax rate kind of follows the cd approach. you identify the under tax profits of each multinational in each country. but then instead of just saying we'll, we'll give that to the headquarters country, let them top up the tanks. you say will apportionment between the countries where

the multinational is have the real business with a sales or whether employment is and that would mean just to give one example for a country like india, they would get more than 3 times as much under that proposal from the cd proposal and the similar they actually for the g 7, they will do better as well. all right, lower income countries are the ones that see the biggest difference. so just, just with them, just, just with an on the clock, they're very briefly what you just said. how realistic is the proposal in order to actually come to fruition? well, i think in tiny realistic what the g 7 that proposed to take the lion's share of the benefits themselves, looks simply untenable, especially in the face of a panoramic that's imposing such costs all around the world. all right, alex called there from tax justice network. in london and chelsea delaney in frankfort. thank you so much for both of you. now let's take a look at some of the other business stories making headlines. chinese state

shipping company costco wants to acquire a steak in germany largest port in hamburg, accompanied in talks with a port operator to take a stake of up to 40 percent. and one of the large container terminals. there is a 2 parties come to an agreement. costco ships will get preferential treatment at the port. china's import grew fast paced in 10 years in may mostly because of a surgeon commodity prices like colon steel exports on the other hand, rose by less than expected because of delays at ports in southern china. the main shipping company was largest automotive supply. a boss is opening a new semi conductor plant in dress. then today, bush has invested 1000000000 euros on the site, which will focus on the production of microchips for the car industry. the honestly depends heavily on conductors from asia, but disruptions in the global supply chain during the corona virus condemning of lead to massive shortage of the plants in europe,

a fully digitized and highly network semiconductor factory. the german government also invested in the plant starts off production is later for july 2020 for a physicist y'all can render connect. quality control is up next. when it comes to chips, it's all about the tiny details. a single chips no larger than a finger. now contains several 1000000000 transistors. the science behind it is amazing. because we can check in the video transistors, if we suspect there's a defect, we can find a specific transistor among 5000000000 them, cut it, analyze it closely, and find the cause of the defect. tens of thousands of silicon wafers packed in boxes are moving through the production sights of global foundries. europe's largest ship, producer, 24 hours a day, 7 days

a week. once ordered, it can take up to 3 months to produce a chip. some of the factory machinery costs as much as an aircraft we see sustained, high customer demand. the plant is already fully book this year and to a large extent, next year, we need to invest so we can offer our customers more products and technology ships are scarce all over the world. it's a good time to invest. global foundries wants to double production at its german site. nearby, there's an infinity in plant. the company is the global leader in the production of vehicle chips. here to there are plans to expand income in the coming 45 years and finney in one vest the 1000000000 euros to expand this site. the world's largest automotive supplier boss has also invested heavily spending a 1000000000 euros on

a new factory. the region around the city of traced and has become the hub of europe semiconductor industry. every 2nd european ship is made here where the leading european region, but globally we still have a lot to do to stay competitive and young, but the race is tough. it's not over and it's a global res. asia and the u. s. are well ahead in this race. europe now wants to combine its forces to catch up. el salvador may become the 1st country in the world to make bitcoin legal tender precedent. now you've made the announcement in a pre recorded message plate at a bit coin conference in miami on saturday. he said he'll propose a bill this week that will make the trip to currency niga tend to in the central american nation legal tender. and reminder of the top story this, our she 7 finance ministers agreed on

a 50 percent global minimum tax on multinational. while critic say this doesn't go far enough. proponents of the deal believe it could go a long way toward addressing the uneven way in which businesses are charged, as well as your business update to you and d, w for me. and the team, thanks for watching the young, the rock and immigrants they know the police will stop that the route is not a solution. they know their flight could be fatal. going back is not an option. shattered dreams starts june 18th on d, w. future wars. d, w. richard walker explores the evolution of digital warfare, making military law more efficient,

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