Aurore Lalucq MEP (S&D, France), rapporteur on the dossier, presented her proposal for a report on the directive on the global minimum level of taxation of multinational groups to the European Parliament’s Committee on Economic and Monetary Affairs on Monday 21 March. While the EU Council has not yet reached a compromise (see EUROPE 12911/16), the Parliament’s advisory opinion is also subject to debate, particularly on the tax rate and exemptions.
Ms Lalucq began by praising the work of the OECD and the G20, and “the speed of Europe”. The European Commission’s proposal for a directive is, in her view, “incredibly thin”. In fact, “the line I wanted to take is simple: send a signal of responsibility”, she said. However, she was quick to criticise the tardy procrastination of some countries: “we must move quickly and not propose changes willy-nilly”. Her proposal therefore aims to send “political signals” and highlight “points of vigilance”.
However, her proposal to increase the minimum tax rate from 15% to 21%, although optional, displeased the right-wing shadow rapporteurs. “I don’t believe watering down the proposal would be the good way to go, it won’t be good economically and politically. We should go to a vote”, warned Luděk Niedermayer (EPP, Czech Republic). Similarly, Isabel Benjumea Benjumea (EPP, Spain) said it was “dangerous” to try to change the agreement. “For socialists, it’s never enough”, was her exasperated response.
For Gilles Boyer (Renew Europe, France), we must “be careful to assert our ambitions without changing the fundamentals” and not “wave a figure like a red rag”. The shadow rapporteurs also expressed concern about the risk of maintaining tax competition and “ensuring a level playing field with the US” if the rate is increased.
Similarly, Ms Lalucq’s proposal to remove the exemptions for the maritime sector was disliked, even though it is in the OECD agreement, she noted.
Only the Greens/EFA, represented by French MEP Claude Gruffat, showed support for the proposal: “Our public finances are stretched to the limit, we need as ambitious an agreement as possible, with no exemptions for companies operating in tax havens”.
Ms Lalucq provided assurances that a compromise would be found on all issues, as she “does not want to jeopardise this agreement, which will allow Europe to be a pioneer”.
MEPs therefore have until 29 March 2022 to table their amendments. The report will be voted on in committee at the end of April and then in plenary in June under the French Presidency.
To read the draft report: https://aeur.eu/f/vs (Original version in French by Anne Damiani)