“It is time to decide, this is my message for the MEPs today”, the French finance minister, Bruno Le Maire, said in Strasbourg on Tuesday 23 October. He spent one hour delivering a heartfelt plea in favour of the Commission's proposal for a 3% tax on the gross earnings of the activities of digital platforms ('digital services tax' or DST) before the 'ECON and 'TAX 3' parliamentary committees of the European Parliament.
“Some states are still hesitating, you will help me to convince them!” he challenged the MEPs, adding that they are the “best conduits for public opinion”.
Le Maire – who told the press before the meeting that the Council was very close to agreement – took stock of the progress made so far. "They told us it was impossible to get support of all European member states”, he said, but by summer 2017, France had the support of Germany, Italy, Spain and the United Kingdom, and then of 14 further member states, and has recently received the blessing of the countries of the Visegrád group (see EUROPE 12112). Following his proposal for a 'sunset clause' (see EUROPE 12092), France won over the Baltic states, the Netherlands and – as it hardly dared to hope for – Luxembourg.
When questioned by Jeppe Kofod (S&D, Denmark) as to which countries are particularly reluctant, Le Maire declined to name names, but agreed to provide an overview. “We might say that the countries of the South are warm, the countries of the North a bit cooler”, he explained.
To carry this point, he undertook to tackle all criticism point by point. “No, dual taxation has never been an issue. No, the DST does not specifically target the United States. No, it will not call into question the principle of taxation at the place of production. And if we have to put this down in black and white, we will put it down in black and white”, he stressed.
Nor are we seeking to disrupt the economic models of any given European country. “We will provide solutions to all those with concerns”, he said.
Starting with Ireland. “Ireland has concerns; I can understand it, it has to deal with Brexit, it has an economic model based on the mass presence of digital giants on its soil”, he said.
“The chances of success are very low, despite your eloquence”, said Eva Joly (Greens/EFA, France), suggesting using the bridging clause set out in article 116 of the Treaty to move to qualified majority at the Council in taxation matters. However, the minister said that he would rather engage in a “political battle” than “get lost in procedural battles”.
Several MEPs also asked him about the progress with the work on the common corporate tax base (CCTB) and its consolidation (CCCTB). The minister, who considers these dossiers to be complimentary to the DST, pledged that the subject would be among the priorities of the French Presidency of the G7 next year, along with the German proposal for a minimum taxation.
“The question we should be asking ourselves today is whether Europe is in front or behind”, he concluded, adding: “that depends on you, the MEPs, it depends on us, the governments and, in a few months, it will depend on the people who will judge us”. (Original version in French by Marion Fontana with Lucas Tripoteau)