Within the framework of President Biden’s initiative to strengthen global infrastructure, the United States International Development (USAID) kicked off the Digital Invest program under the Digital Connectivity and Cybersecurity Partnership (DCCP). The program is a new blended finance program that aims at mobilising private capital for digital finance and internet service providers (ISPs) serving traditionally excluded consumer populations worldwide. During the first year of the new program, USAID will leverage US$3.45 million in U.S. government funding to accelerate the mobilisation of an estimated US$335 million. In this vein, Digital Invest will promote diverse competition, advance the use of secure network equipment, and reduce the gender digital divide through investments in safe, affordable, and inclusive digital services for underserved consumers in developing markets. This will be done by providing technical assistance, fund capitalization support, and direct portfolio engagement to help financiers support earlier stage, higher-risk projects, and startups with clear development impact, including the advancement of gender equality and women’s economic empowerment.
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Implementation of Pillar One of OECD global tax rules delayed – OECD Secretary General
OECD Secretary General Mathias Cormann has announced that the implementation of Pillar One of the OECD’s global tax framework will be delayed until 2024 at the earlier, rather than 2023 as originally planned. Cormann was speaking during a panel at the World Economic Forum in Davos, Switzerland.
The Secretary General said that although it was intended that a multilateral convention to implement Pillar I would be agreed in time for a G7 summit in June, it was more likely to be agreed upon in time for a G20 meeting in November.
Pillar One targets companies which generate billions in revenues – including Google, Amazon, Facebook, and Apple – and aims to establishes new rules for the allocation of profits among various countries, regardless of whether the companies have a physical presence in those countries.
The likelihood is that Pillar Two, which sets out a minimum global tax, will be implemented sooner.
European MEPs approve proposed directive to implement OECD’s Pillar Two global tax rule
European MEPs have approved the proposed directive to implement the OECD’s so-called Pillar Two of the global tax rules, which sets a minimum corporate tax rate of 15%. The OECD’s Two-Pillar approach was approved by 136 jurisdictions in October 2021.
The proposed directive, published in December 2021 was adopted by the European Parliament by 503 votes in favour, 46 votes against and 48 abstentions.
MEPs have approved the key elements of the proposed directive, including the implementation deadline of 31 December 2022 to ensure a swift application of the law. They made limited changes to the proposal.
Parliament’s text will now be passed on to the EU Council, which must adopt a final text by unanimity. Back at the Council, Poland is the only EU member state which stands opposed to the proposed directive.
Italian police thwart Eurovision cyberattack by pro-Russian hacker groups
Italian police thwarted hacker attacks by pro-Russian hacker groups Killnet and Legion during the 10 May semi-final and 14 May final of the Eurovision Song Contest (ESC) in Turin, Italy. Russia was excluded from the competition due to what it calls its special military operation in Ukraine, while Ukraine went on to win the contest.
Killnet denied the attack on ESC, but then declared cyberwar on 10 countries in the same Telegram post. In a separate video, the group stated that these 10 countries are ‘the US, the UK, Germany, Italy, Latvia, Romania, Lithuania, Estonia, Poland, and Ukraine.’
Get rid of EU unanimity voting? No way, member states insist
European Commission president Ursula von der Leyen has criticised unanimity voting, causing a stir among member states.
Speaking during the EU citizens’ assembly, the Conference on the Future of Europe (9 May 2022), von der Leyen said: ‘I have always argued that unanimity voting in some key areas simply no longer makes sense if we want to be able to move faster.’
While she did not mention any ongoing issue, it is believed that her comments were triggered by the ongoing disagreement among EU member states over the implementation of the OECD’s minimum global tax rules. Poland is the only remaining country to block the proposed directive implementing Pillar Two of the tax rules.
Member states reacted immediately in a published non-paper, expressing their opposition to any change. ‘While we do not exclude any options at this stage, we do not support unconsidered and premature attempts to launch a process towards Treaty change. This would entail a serious risk of drawing political energy away from the important tasks of finding solutions to the questions to which our citizens expect answers and handling the urgent geopolitical challenges facing Europe.’
The document was endorsed by Bulgaria, Croatia, the Czech Republic, Denmark, Estonia, Finland, Latvia, Lithuania, Malta, Poland, Romania, Slovenia and Sweden.
OEWG agrees on modalities of stakeholder participation
The OEWG reached agreement to apply modalities for the participation of stakeholders as proposed by the Chair on 20 April, through a silent procedure. NGOs both with and without ECOSOC status should inform the OEWG Secretariat of their interest to participate. However, states can object to the participation of NGOs without consultative status with ECOSOC. The approved NGOs will be invited to participate as observers in the formal sessions, make oral statements during a dedicated stakeholder session, and submit written inputs to be posted on the OEWG’s website. The modalities will be read out at the OEWG’s third substantive session for the formal record.
Five Eyes authorities issue warning against Russia-backed cyberattacks on critical infrastructure
We’ve reported before that US authorities have been warning against imminent cyberattacks from Russia. This time, it’s the cybersecurity authorities from the Five Eyes – Australia, Canada, New Zealand, the UK, plus the USA – who are warning of the risk that cyberattacks are being planned against critical infrastructures in Ukraine and beyond.
The warning comes in a joint cybersecurity advisory, which refers to US intelligence that the Russian government may be exploring options for potential cyberattacks.
The advisory also notes that cybercrime groups that have recently publicly pledged support for the Russian government ‘have threatened to conduct cyber operations in retaliation for perceived cyber offensives against the Russian government or the Russian people.’ The same threat exists for countries and organisations helping Ukraine.
Digital Strategy for Schools to 2027 and payment of €50 million in ICT grant announced
The Irish Minister of Education, Norma Foley, announced the publication of the Digital Strategy for Schools to 2027 and the payment of €50 million in grant funding for digital technology infrastructure to recognised primary and post-primary schools.
The strategic objectives are set out under three pillars to ensure that the school system is prepared for and continues to apply digital technologies in teaching, learning, and assessment. The strategy has also addressed inclusion, supporting curricular reform, online safety, and technical support.
The Abu Dhabi Arabic Language Centre (ALC) launches the ‘Digital Arabic Lexicon’ website
The Abu Dhabi Arabic Language Center (ALC) has launched the Digital Arabic Lexicon website. The objective of the website is to promote arabic language by supporting and enhancing online arabic content. It also aims to establish an integrated digital reference for Arabic speakers and non-speakers. The website is a platform which provides access to vocabulary and meanings in alphabetical order in both Arabic and English languages. Featuring the most common Arabic expressions, the website is a tool to position Arabic language as a leading language in the cultural, creative, and academic fields.
Poland blocks proposed EU directive on OECD’s Pillar Two minimum tax
Poland has blocked the compromise proposal for an EU directive to implement Pillar Two of the OECD’s global tax package, saying that the Two-Pillar solution needed to be tackled together within the same directive. The vote took place during today’s Economic Financial Affairs Council (ECOFIN) meeting (5 April 2022), the third this year.
Disagreements among the EU’s finance minister over the proposed EU directive, published in December 2021, led the French to table various compromise proposals. France had hoped that all the disagreements would be resolved by today’s ECOFIN meeting. Estonia, Malta, and Sweden were among the governments to resist the directive, but joined the majority during previous meetings.
In response to the Polish veto, French Finance Minister Bruno Le Maire said that he was ‘not convinced by the Polish argumentation’, and reiterated that France ‘would continue to pursue this goal, which we believe will be a step forward, until it is adopted.’
The proposed directive must be passed unanimously by EU member states in order to become law.