London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

EU ready to act alone on digital tax if no global deal in 2020

EU ready to act alone on digital tax if no global deal in 2020

European Union commissioners-designate said the bloc should agree on a digital tax if no deal on the matter was reached at a global level by the end of next year, ramping up pressure on multinationals accused of paying too little.

In written answers to EU lawmakers published on Friday, the incoming commissioners also signalled their priorities on fiscal rules and financial reforms for the bloc.

Efforts to overhaul corporate taxation to reflect profits made by digital multinationals have failed to produce results as individual countries have different approaches to taxes.

“If no effective agreement can be reached by the end of 2020, the EU should be willing to act alone” on a digital tax, said the incoming commission’s vice-president Margrethe Vestager, who will be in charge of digital policy and competition.

The commissioner-designate for taxation, Paolo Gentiloni, echoed her comments, saying he would seek to prevent individual EU governments from being able to veto decisions on tax matters - a handful of EU states last year opposed a bloc-wide agreement on the digital tax.

The new commissioners are due to take office in November after they receive the final green light from EU lawmakers in hearings beginning next week.




Gentiloni also said that as part of the fight against tax evasion and tax avoidance, jurisdictions included in the EU’s tax haven list should be subject to common sanctions. There is currently no coordination on financial penalties from the EU.
FISCAL RULES

As the bloc’s growth slows, EU commissioners also signalled their preferred measures to revive the economy, with Italy’s Gentiloni pushing for fiscal leeway and Latvia’s Valdis Dombrovskis calling for a “responsible fiscal policy”.

“I will seek to have the Commission apply the Stability and Growth Pact making full use of the flexibility allowed in the rules,” Gentiloni said, repeating recurring calls from Italian politicians who see the bloc’s fiscal requirements as too strict.

Dombrovskis, who will decide together with Gentiloni how to apply the rules in the coming five years, was more cautious, confirming his reputation as a defender of fiscal discipline.

“We should be vigilant to possible risks to economic and financial stability and preserve sustainable public finances,” he said. But he also called for more public investment from states with low debt, like Germany or the Netherlands.

In remarks that could go down less well in high-debt countries such as Italy or Greece, Dombrovskis said measures were needed to encourage banks to reduce their exposure to bonds issued by their home states.

Highly-indebted states fear that a push on banks to diversify their sovereign bond holdings could increase yields on their public debt, as national lenders would dump riskier paper in favour of safer securities.

Dombrovskis also urged the speeding up of reforms that could help banks sell their bad loans, the amount of which relative to total lending is decreasing but still high in Italy, Greece, Cyprus and Portugal.

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×