In an exchange of views with Paolo Gentiloni, Commissioner for Economy, on Monday 27 June, MEPs in the Subcommittee on Tax Matters asked him how to resolve the impasse on minimum taxation of multinationals (see EUROPE 12974/8). Although he assured MEPs that the European Commission was “working on a solution”, he did not give them a concrete answer.
“We remain fully committed to pressing ahead with this crucial reform to the global tax framework: step by step and piece by piece it must become reality”, he said.
But his speech did not convince MEPs. “What is plan B?”asked Aurore Lalucq (S&D, France), highlighting the work of the French Presidency, the European Commission and the Parliament to move the dossier forward.
Lídia Pereira (EPP, Portugal) condemned “political gamesmanship”, and the fact that Hungary was using the text as a “bargaining chip”. “We risk putting Europe’s competitiveness at stake”, she warned.
“Unanimity is legitimate [...] but loyal cooperation is also at stake”, Mr Gentiloni stressed. “The veto right is being misused”, he added, noting Hungary’s attitude of first voting in favour of the directive on minimum company taxation and then vetoing it at the last Ecofin Council.
The question of the end of unanimity on tax issues was also discussed: “I think it is time to address some specific and severe distortions of the single market. Article 116 offers a chance to meet citizens’ demand on tax fairness and social justice”, said Gentiloni.
Like many of his colleagues, Gilles Boyer (Renew Europe, France) said he was in favour of qualified majority voting in tax matters. However, he considered that enhanced cooperation was “not a solution in this case”, (see EUROPE 12978/8), because of competitiveness.
A view shared by Mr Gentiloni: “I fully support enhanced cooperation, it is a good instrument but not the right one here, because we cannot accept giving up the effort”.
José Gusmão (The Left, Portugal) mentioned his concern about pillar I of the OECD agreement on the taxation of digital companies. The text is likely to run into difficulties in the United States with the mid-term elections. “Are you considering unilateral solutions?”, he asked.
As proposed by the French Presidency of the Council in the latest version of the directive, Mr Gentiloni noted that the Commission would take stock of the situation in June 2023 and take action if Pillar I has not progressed. (Original version in French by Anne Damiani)