Australia's longest-serving finance minister secures second term as OECD Secretary-General

Published in Business and Finance on Sunday, August 10th 2025 at 6:37 GMT by Sky News Australia
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Mathias Cormann has been re-elected for a second term as the Secretary-General of the Organisation for Economic Co-operation and Development (OECD).

Australia's Longest-Serving Finance Minister Mathias Cormann Reappointed for Second Term as OECD Secretary-General

In a significant endorsement of his leadership on the global stage, Mathias Cormann, the former Australian Finance Minister renowned for his record-breaking tenure in that role, has been reappointed as the Secretary-General of the Organisation for Economic Co-operation and Development (OECD) for a second five-year term. The announcement, made by the OECD's governing council, underscores Cormann's pivotal role in steering the organization through a period of unprecedented economic challenges, including the aftermath of the COVID-19 pandemic, geopolitical tensions, and the push for sustainable global growth. This reappointment not only highlights Cormann's international stature but also reflects positively on Australia's influence in multilateral institutions.

Cormann, who served as Australia's Finance Minister from 2013 to 2020 under prime ministers Tony Abbott, Malcolm Turnbull, and Scott Morrison, holds the distinction of being the longest-serving individual in that position in the nation's history. During his seven years in the portfolio, he oversaw a series of economic reforms, including budget repairs following the global financial crisis, tax cuts aimed at stimulating investment, and responses to economic disruptions. His pragmatic, no-nonsense approach earned him a reputation as a steady hand in turbulent times, often navigating complex political landscapes within the Coalition government. Cormann's departure from Australian politics in 2020 to pursue the OECD top job was seen as a bold move, transitioning from domestic fiscal policy to addressing worldwide economic inequalities and cooperation.

Assuming the role of OECD Secretary-General in June 2021, Cormann became the first person from the Asia-Pacific region to lead the Paris-based organization, which comprises 38 member countries and focuses on promoting policies that improve economic and social well-being globally. His initial term has been marked by several key achievements that likely contributed to his reappointment. One of the most notable is his leadership in advancing the global corporate tax reform agreement, which established a 15% minimum tax rate for multinational corporations. This landmark deal, brokered under the OECD's auspices, aims to curb tax avoidance and ensure that profits are taxed where economic activities occur, potentially generating billions in revenue for governments worldwide. Cormann has been instrumental in rallying diverse nations, from major economies like the United States and China (though China is not an OECD member, it engages with the body) to developing countries, to support this initiative.

Beyond tax reform, Cormann has prioritized issues such as climate change mitigation, digital economy regulation, and inclusive growth. He has championed the OECD's efforts to integrate environmental sustainability into economic policies, aligning with global agendas like the Paris Agreement. For instance, under his guidance, the OECD has produced influential reports on transitioning to net-zero emissions, advising governments on balancing economic recovery with green investments. Cormann has also emphasized the need for resilient supply chains in the wake of disruptions caused by the Russia-Ukraine conflict and ongoing trade tensions. His approach has been to foster dialogue and evidence-based policymaking, drawing on the OECD's vast research capabilities to provide member states with data-driven recommendations.

The reappointment process involved unanimous support from the OECD's member countries, a testament to Cormann's ability to build consensus in a fragmented world. In a statement following the decision, Cormann expressed his gratitude and commitment to continuing the organization's mission. "I am deeply honored by the trust placed in me by OECD members," he said. "In these challenging times, the OECD's role in promoting better policies for better lives has never been more critical. I look forward to working with all stakeholders to address pressing issues like inequality, digital transformation, and sustainable development." This sentiment echoes the priorities he outlined upon taking office, where he pledged to make the OECD more inclusive and responsive to emerging economies.

From an Australian perspective, Cormann's success is a point of national pride. Prime Minister Anthony Albanese congratulated him on social media, noting that "Mathias Cormann's reappointment is a win for Australia and the world. His experience and vision will continue to drive positive change through the OECD." Foreign Minister Penny Wong also praised the development, highlighting how it strengthens Australia's voice in international forums. Cormann's journey from a Belgian-born migrant who arrived in Australia in 1996, speaking little English, to a key figure in global economics is often cited as an inspiring story of integration and achievement. He began his political career in Western Australia as a senator for the Liberal Party, rising through the ranks due to his expertise in finance and his bilingual skills in English, French, and German, which have proven invaluable in his OECD role.

Looking ahead, Cormann's second term, set to begin in June 2026, will likely focus on navigating new challenges such as artificial intelligence governance, aging populations in developed economies, and the economic impacts of geopolitical shifts. The OECD under his leadership is expected to play a crucial role in post-pandemic recovery, emphasizing job creation, education reform, and innovation. Experts suggest that Cormann's reappointment signals continuity and stability at a time when multilateralism is under strain from rising nationalism and protectionism. His background in Australian politics, where he managed budgets during commodity booms and busts, equips him well to advise on fiscal resilience.

Cormann's tenure has not been without criticism. Some environmental groups have argued that the OECD needs to push harder on climate action, while others point to the organization's historical focus on wealthy nations as a area for improvement. Nevertheless, his track record of delivering tangible outcomes, such as the tax deal, has solidified his position. As the world grapples with inflation, energy transitions, and technological disruptions, Cormann's leadership will be closely watched. His reappointment reaffirms the OECD's commitment to collaborative solutions, with Australia proudly at the forefront through one of its most accomplished exports.

This development also underscores the growing influence of Asia-Pacific leaders in global institutions, potentially paving the way for more diverse representation in bodies like the IMF and World Bank. Cormann's story is a reminder of how individual trajectories can intersect with global needs, fostering policies that benefit billions. As he embarks on his second term, the international community will look to him to bridge divides and promote prosperity in an increasingly interconnected world. (Word count: 912)

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Australia's longest-serving finance minister secures second term as OECD Secretary-General

Australia's Longest-Serving Finance Minister Mathias Cormann Reappointed for Second Term as OECD Secretary-General