News

The EU is ready to act alone on the digital tax, as there is no global deal in 2020

BRUSSELS (Reuters) – the European Union, the commissioners-designate, said the bloc should agree on a digital load, and if there is no deal on the matter had been reached at the global level, and by the end of next year, and to ramp up the pressure on multinationals accused of paying too little.

FILE PHOTO: eu Commissioner for Competition, Margrethe Vestager, addresses a press conference on an antitrust case in Brussels, Belgium, on July 18, 2019 at the latest. REUTERS/Yves Herman/File Photo

In written answers to EU lawmakers, published on Friday, the incoming board will be identified and their priorities for tax regulations and financial reforms are on the block.

The efforts for the revision of the corporation tax (corporate income tax), to reflect the profits made in the digital and multi-national companies have not to deliver results as individual countries have different approaches to taxation.

“If there is no effective agreement can be reached by the end of 2020, the EU needs to be prepared to act on the digital taxation, said the incoming commission vice-president, Margrethe Vestager, who will be in charge of digital policy, and the degree of competition.

The commissioner designate for taxation, Paolo Gentiloni, has echoed her remarks, and that he would try to prevent it from the individual EU member governments and the ability to veto decisions made about the tax affairs of a handful of of the member states of the EU last year, from a bloc-wide agreement on digital taxation.

The new commissioners are scheduled for November after the date of receipt of the final go-ahead from the EU lawmakers, in hearings beginning next week.

Gentiloni also said that as part of the fight against tax evasion and tax avoidance, the jurisdictions included in the EU’s tax haven list are subject to a joint punishment. At present there is no co-ordination of the financial sanctions imposed by the european union.

THE TAX RULES

If the block is that the growth is slowing down, the EU, the supervisory board is also informed of their required actions in order to revive the economy as a whole, Italy’s Gentiloni, pushing tax freedom and Latvia’s Valdis Dombrovskis calls for a responsible fiscal policy.”

“I’ll have to look into the Commission’s application of the Stability and growth pact, to make full use of the flexibility within the rules,” Gentiloni said, in a repeat of the repeated calls from Italian politicians, the bloc’s fiscal requirements are too strict.

Dombrovskis, who has to decide, together with the Gentiloni, the application of the rules over the next five years, was more cautious, confirms his reputation as a champion of fiscal discipline.

“We need to be aware of the potential risks to the global economic and financial stability and the sustainability of the public finances,” he said. But he also called for more public investment by the states with low debt, such as Germany and the Netherlands.

In the notes, it could be not as good in high-debt countries such as Italy and Greece, Dombrovskis said that the measures were necessary in order to encourage banks to reduce the exposure to bonds that are issued by their home states.

Very much would like to thank the member states are concerned that the pressure on the banks to diversify their sovereign bonds to increase the rate of return on public debt, the public credit would be to dump riskier paper in favor of safer securities.

Dombrovskis also urged the speeding up of the reforms, which may help banks to sell their non-performing loans, the value of which, in comparison to the overall lending is decreasing, but remains high in Italy, Greece, turkey, Cyprus, and Portugal.

Reporting by Francesco Guarascio; editing by Philip Blenkinsop and Kirsten Donovan

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular