European Finance Ministers will meet on Tuesday 6 November at the Economic and Monetary Affairs Council meeting in Brussels. The only legislative discussion on the agenda will concern the Commission's proposal to tax gross income from the activities of digital platforms at a rate of 3% (‘digital services tax’ or DST).
As announced in EUROPE 12128, ministers will be asked to decide on whether or not to exclude the sale of data from the scope of application, and on the French proposal for a ‘sunset clause’ (see EUROPE 12092) specifying that an international solution at OECD level will replace the European solution.
And there is a hint of paradox, according to several observers, since technical work seems to be progressing well on the text while some Member States, such as Ireland, remain fiercely opposed to the very principle of having a European solution rather than waiting for consensus at international level.
Ireland continues to engage “constructively” in the work, although it has not lifted its objection in principle, a diplomatic source said on Wednesday 31 October. Despite its reluctance, it seems that Ireland nevertheless intends to shape the legislation as it wishes.
According to the same source, work at OECD level is also on track. The meeting of the working group on the digital economy in early December will provide a first opportunity to discuss concrete proposals at international level.
As for the idea of offering financial compensation to Ireland to compensate for the potential loss of tax revenue resulting from the introduction of this tax, the source indicated that no offer had been officially put on the table and that, for the time being in any case, this was no more than a “rumour”.
Although not formally on the agenda, the question of the legal basis of the Directive could also be raised again.
In mid-October, an opinion from the EU Council's Legal Service caused a stir by considering that the DST would not constitute an “indirect tax” for companies, thus raising “serious doubts” about the choice of Article 113 of the TFEU and suggesting that Article 115, valid for all other taxes, might be more appropriate.
Statistics. Ministers are also expected to adopt conclusions on European statistics. No detailed discussion is expected on this point, according to a European source.
A draft set of conclusions, dated 29 October, of which EUROPE has received a copy, welcomes the priority given to work on statistics in several areas, such as migration, employment and poverty, and, within the framework of the Economic and Monetary Union, welcomes Eurostat's willingness to assess the new related statistical needs.
The text also underlines the need to ensure that human and financial resources are sufficient for investment in and maintenance of statistical infrastructure at European and national level.
COP 24. Ministers will also adopt conclusions on “climate finance”, in preparation for COP 24 in Katowice, Poland, from 3 to 14 December. There, again, no substantial discussion is expected.
Budget 2017. Finally, the President of the European Court of Auditors will present to the ministers the 2017 Annual Report on the implementation of the budget, on the basis of which a discharge for the 2017 budget will be decided. The report points out that receipts and payments for 2017, as a whole, have been legal and regular.
Ministers will start their day with a ministerial dialogue with the EFTA countries and conclude it with a point from the Austrian Presidency of the EU Council on the discussions that took place at the G20 and IMF meetings in Bali in mid-October. (Original version in French by Marion Fontana)