New OECD Chief Appointed After 15 Years: "Top Priority is Climate Change Response"

Mathias Cormann, Former Australian Minister for Budget... First Asia-Pacific Native Head of OECD

Mathias Cormann, the new Secretary-General of the Organisation for Economic Co-operation and Development (OECD)
[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] Mathias Cormann, the new Secretary-General of the Organisation for Economic Co-operation and Development (OECD), officially began his term on the 1st (local time). He succeeded Angel Gurr?a, who had served as the head of the OECD for the past 15 years.

Making Climate Change the Top Priority... Also Addressing COVID-19 Response and Blocking Tax Avoidance by Multinational Corporations

Secretary-General Cormann stated that addressing climate change would be his top priority. At his first press conference held virtually after taking office, Cormann said, "The key is to achieve goals that are cost-efficient, economically responsible, and publicly supported."

He introduced plans to operate the "Climate Action Assessment Program" (IPAC), which will evaluate OECD member countries' efforts to reduce carbon emissions over the next 100 days, and to share the results at the 26th UN Climate Change Conference of the Parties (COP26) to be held this November in Glasgow, Scotland.

Cormann also emphasized the need to make every effort to ensure COVID-19 vaccines reach everyone worldwide, explaining that such efforts are not acts of charity by developed countries but measures to protect us all.

He said, "The digital transformation of our economies accelerated during the COVID-19 pandemic," adding, "We must properly manage risks and challenges such as cybersecurity, privacy, and tax policies to ensure everyone can participate and benefit."

Furthermore, Secretary-General Cormann stressed the active prevention of tax avoidance by multinational corporations. He said, "We must fight against tax evasion and multinational tax avoidance and ensure that digital operators and large corporations pay their fair share," adding, "We need to promote agreement on a global minimum corporate tax rate and complete work to minimize profit shifting resulting from the digitalization of the global economy."

Currently, the global minimum corporate tax, which imposes a minimum corporate tax rate of 15% or more on multinational corporations across all countries, is being discussed by the G7, a group of seven major advanced economies, starting with a proposal by U.S. President Joe Biden.

Cormann, Born in Belgium... Nicknamed "Australia's Terminator" for His Strong German Accent

Cormann, the first OECD head from the Asia-Pacific region, was born in Belgium but immigrated to Australia in his twenties.

Mathias Cormann, the new Secretary-General of the Organisation for Economic Co-operation and Development (OECD) (left), and Angel Gurr?a, the former Secretary-General (right) [Image source=EPA Yonhap News]

Having spent his childhood in the German-speaking part of Belgium, he is known for speaking English with a strong German accent. Because of this, Australians nicknamed him the "Terminator" (the character played by Hollywood actor Arnold Schwarzenegger, who speaks English with a German accent). He also studied French and Dutch during his school years in Europe.

He highlighted his ability to speak four languages (English, German, French, and Dutch) as an advantage during his bid for the OECD Secretary-General position.

Longest-Serving Australian Minister of Finance... Also Criticized for Being Passive on Climate Change

He served as Australia's Minister of Finance from 2013 to 2020, setting the record as the longest-serving finance minister.

After announcing his candidacy for the OECD Secretary-General position, some environmental groups strongly opposed him due to his association with the Tony Abbott administration in Australia. During Abbott's tenure, some ministers showed a passive stance on climate change issues.

International environmental organizations such as Greenpeace also criticized Cormann for opposing reforms to Australia's carbon tax system aimed at reducing emissions during his time as a minister.

He competed closely with Cecilia Malmstr?m, former European Union (EU) Trade Commissioner from Sweden, and won by a narrow margin in the final vote.

After Cormann was confirmed as the next OECD Secretary-General in March, Australian Prime Minister Scott Morrison said, "Cormann has attained the highest position held by an Australian in the international community."

[Image source=Reuters Yonhap News]

Meanwhile, Angel Gurr?a, who stepped down after a 15-year term, said in his farewell speech, "While defeating COVID-19 is the most urgent task, our most important responsibility is to protect the planet."