Beautiful Virgin Islands

Tuesday, Jun 24, 2025

EU ready to act alone on digital tax if no global deal in 2020

EU ready to act alone on digital tax if no global deal in 2020

European Union commissioners-designate said the bloc should agree on a digital tax if no deal on the matter was reached at a global level by the end of next year, ramping up pressure on multinationals accused of paying too little.

In written answers to EU lawmakers published on Friday, the incoming commissioners also signalled their priorities on fiscal rules and financial reforms for the bloc.

Efforts to overhaul corporate taxation to reflect profits made by digital multinationals have failed to produce results as individual countries have different approaches to taxes.

“If no effective agreement can be reached by the end of 2020, the EU should be willing to act alone” on a digital tax, said the incoming commission’s vice-president Margrethe Vestager, who will be in charge of digital policy and competition.

The commissioner-designate for taxation, Paolo Gentiloni, echoed her comments, saying he would seek to prevent individual EU governments from being able to veto decisions on tax matters - a handful of EU states last year opposed a bloc-wide agreement on the digital tax.

The new commissioners are due to take office in November after they receive the final green light from EU lawmakers in hearings beginning next week.




Gentiloni also said that as part of the fight against tax evasion and tax avoidance, jurisdictions included in the EU’s tax haven list should be subject to common sanctions. There is currently no coordination on financial penalties from the EU.
FISCAL RULES

As the bloc’s growth slows, EU commissioners also signalled their preferred measures to revive the economy, with Italy’s Gentiloni pushing for fiscal leeway and Latvia’s Valdis Dombrovskis calling for a “responsible fiscal policy”.

“I will seek to have the Commission apply the Stability and Growth Pact making full use of the flexibility allowed in the rules,” Gentiloni said, repeating recurring calls from Italian politicians who see the bloc’s fiscal requirements as too strict.

Dombrovskis, who will decide together with Gentiloni how to apply the rules in the coming five years, was more cautious, confirming his reputation as a defender of fiscal discipline.

“We should be vigilant to possible risks to economic and financial stability and preserve sustainable public finances,” he said. But he also called for more public investment from states with low debt, like Germany or the Netherlands.

In remarks that could go down less well in high-debt countries such as Italy or Greece, Dombrovskis said measures were needed to encourage banks to reduce their exposure to bonds issued by their home states.

Highly-indebted states fear that a push on banks to diversify their sovereign bond holdings could increase yields on their public debt, as national lenders would dump riskier paper in favour of safer securities.

Dombrovskis also urged the speeding up of reforms that could help banks sell their bad loans, the amount of which relative to total lending is decreasing but still high in Italy, Greece, Cyprus and Portugal.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
×