OECD looks beyond climate with Mathias Cormann appointment

In electing Australia’s longest serving finance minister, OECD signals China, growth in the Indo-Pacific and tax on social media giants on its agenda.

Mathias Cormann’s consensual style impressed European leaders. Picture: NCA NewsWire / Gary Ramage

The election of Australia’s former finance minister Mathias Cormann as the next secretary-general of the Organisation for Economic Co-operation and Development (OECD), despite fierce last minute lobbying by green groups, indicates the 37 member countries wish to look beyond climate change as global economic drivers.

In electing Mr Cormann, 50, the OECD is signalling other concerns such as China, growth in the Indo-Pacific and taxation on social media giants is on the agenda as well as climate change.

Belgian-born Mr Cormann — Australia’s longest serving finance minister — is believed to have fended off a late flurry of international and domestic attacks about his involvement in the Liberal Party’s environment record by convincing the OECD heads of delegation that he would pursue “economically responsible emissions reductions” through every possible policy and analytic capability to achieve global net zero emissions by 2050.

He is to be handed the five year Paris-based post ahead of the former European Union commissioner Cecilia Malmstrom, from Sweden, in a consensus decision.

He will take up the position in June, when Angel Gurria, the Mexican economist and diplomat, stands down after 14 years.

Mr Cormann’s election came after a fraught final few hours.

But Australia’s leadership on confronting the social media giants in recent months, as well as Mr Cormann’s experience in dealing with China, is understood to have helped sway some hesitant countries to swing behind him ahead of Ms Malmstrom.

As well, Mr Cormann’s consensual style impressed European leaders, despite Ms Malmstrom, 52, being a former European Trade Commissioner.

Being able to lobby leaders across Europe by speaking to them in fluent German, French, Flemish and English was crucial to underpinning Mr Cormann’s widespread support.

It is believed he also attracted important support from the United States, because of his understanding of the Asian region and influence of China.

The OECD has been increasingly involved in whether companies like Facebook and Google should be taxed, with the EU wanting to impose new taxes against the wishes of the United States.