While Poland refused to approve the French Presidency’s latest compromise proposal, which incorporates the OECD agreement on reforming the taxation of large companies (pillar II) into EU law, at the last Ecofin Council in early April (see EUROPE 12926/25), MEPs wanted to remain cautious in their opinion. Meeting in the Committee on Economic and Monetary Affairs (ECON) on Wednesday 20 April, they presented their proposed amendments to the opinion drafted by the rapporteur, Aurore Lalucq (S&D, France).
While The Left and the Greens/EFA group tabled numerous amendments to increase the threshold and the tax rate, the EPP and Renew Europe preferred not to touch the original text. “We did not want to change the text, not because we think it’s perfect, but because we think it’s fragile”, summarised Gilles Boyer (Renew Europe, France). “The two positions are perfectly audible, one side wants something more ambitious, the other side wants to stay close to the agreement”, Lalucq told EUROPE. “The people most ambitious for this text are probably the ones who want it the most, because this agreement was unimaginable two years ago”.
The Left and the Greens/EFA Group also criticised the text for loopholes and exceptions, in particular in relation to maritime transport and pension funds. Claude Gruffat (Greens/EFA, France), who fears that “the text will lose its substance” hopes that countries that want to go further will do so.
On the other hand, the ECR and some non-attached right-wing MEPs disagreed, saying that the text was “not reasonable” and did not represent a viable solution for the European economy.
MEPs also made proposals to strengthen the text: anti-abuse laws, more information exchange, a 5-year revision clause and the use of delegated acts in case of amendments. However, most called for a rapid transposition at EU Council level.
“The Parliament’s position should not be used as an excuse. It shows a sense of responsibility”, concluded Ms Lalucq, noting that “this agreement is historic”. Luděk Niedermayer (EPP, Czech Republic) also regretted that taxation remains a matter for unanimous vote in the EU Council and is not subject to co-decision.
The opinion will be voted on in the ECON Committee on Thursday 28 April. To read the proposed amendments: https://aeur.eu/f/1aq (Original version in French by Anne Damiani)