By Cordia Scott Hennaman, MNE Tax
The OECD council on March 15 named former Australian finance minister Mathias Cormann as its next leader beginning in June. He will become the first secretary-general from the Asia-Pacific region.
The council, composed of ambassadors representing the 37 member countries, selected Cormann to become the sixth secretary-general of the group. His term will last five years.
Cormann will assume his duties on June 1, the day after Secretary-General Angel Gurria concludes his 15 year-long leadership of the organization. The leadership change will coincide with the first of two sessions of the Annual OECD Ministerial Council Meeting to be held on May 31–June 1.
He most recently served as Australia’s Minister for Finance from 2013 to 2020 and was a leader of the Australian government in its Senate from 2017 to 2020.
Known to prefer lower tax rates, Cormann, a center-right politician, will oversee an OECD-led effort to reach global agreement on new international tax rules for multinationals, including how to tax multinational technology companies, among other issues.
He’s also known as a strong advocate for open markets, free trade, and the importance of rules-based global economic governance.
Born in Belgium, Mathias Cormann migrated to Australia in 1996. He will bring a “distinctive perspective” to the secretary-general role, the OECD said, noting that he spent half his life in Europe and the other half in the Asia-Pacific.
The United States Council for International Business (USCIB), which represents many of the world’s top companies and serves as the US member organization of Business at OECD (BIAC), welcomed Cormann’s appointment. The BIAC group develops the OECD’s tax policies.
“Multilateralism matters now, more than ever, and all of us at USCIB look forward to a productive partnership and a collaborative relationship with the new OECD Secretary General,” said USCIB President and CEO Peter Robinson. “USCIB and our members rely on BIAC’s work with the OECD to achieve the right policy responses and guidance. This cooperation will be critical as we all work together towards economic and social recovery from the COVID-19 pandemic.”
Phil O’Reilly, chairman of BIAC, noted that the OECD’s ability to bring solutions to global challenges relies on its effective consultation with the private sector. “Our input has been critical to the success and implementation of major OECD initiatives,” O’Reilly said. “Our strengthened collaboration will be essential to further increase the OECD’s policy impact in the coming years.”
Cormann faced opposition to his appointment from some climate change-interest groups, however, such as Greenpeace International, Oxfam Australia, and the Australian Conservation Foundation.
“Mathias Cormann has been a leading figure in a government that has repeatedly blocked climate action and promoted the increased use of fossil fuels, the leading driver of climate change,” said David Ritter, CEO of Greenpeace Australia Pacific.
“Our global community currently faces the twin challenges of recovering from the coronavirus pandemic and tackling accelerating climate change,” Oxfam Australia CEO Lyn Morgain said. “As communities experience the impacts of climate change, including here in Australia and across the Pacific, there is no time to waste.”
Cordia Scott Hennaman
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