The Socialists and Democrats in the European Parliament deplore that EU members of the G7 betrayed tax justice by agreeing to a shady agreement with US President Donald Trump that exempts US multinationals from the historic global minimum tax deal.
The implementation of this global minimum tax deal would have yielded €64 billion annually in additional tax revenues for the EU. The S&D Group demands full accountability and has requested a plenary debate on the issue next week in Strasbourg. European Commissioner Wopke Hoekstra, who is responsible for taxation, must provide answers.
Bruno Gonçalves, S&D spokesperson on taxation, added:
"The G7’s agreement to exempt American multinationals from the global minimum tax deal is a scandalous and unacceptable capitulation by the EU under Trump’s bullying.
"In 2021, nearly 140 countries across the world reached this historic agreement, which was supported by a broad cross-party majority in the EU. There is no justification – and no mandate – for this dangerous backslide.
"That is why we demand answers and accountability. Commissioner Hoekstra must explain to Europeans why their governments will now have less money to ensure decent public services and why the EU is favouring a fiscal wild west over a fair and sustainable tax system.
"The Commissioner must also clarify to the European Parliament what this means for the EU law implementing a 15% minimum effective tax rate for multinationals, adopted in December 2022."
Note to editors:
*In October 2021, 137 countries reached a landmark deal to introduce a minimum effective corporate tax rate of 15%, which for the first time curbs global tax competition. This agreement, concluded under the OECD/G20 framework, needs to be translated into European law and into the legislative frameworks of all other signatories. The EU adopted legislation implementing the global agreement in December 2022.
Read more about the S&Ds’ long-standing campaign for tax justice
