At the European level, he wants to introduce three new taxes: money will be needed to pay off huge debts

“Tech giants, major foreign issuers and multinational corporations working on fiscal optimization should make a fair contribution to Europe’s recovery,” Valerie Hayer, a French MEP, was quoted as saying in a report by the Committee on Budgets.

Aušra Maldeikienė, a member of the Group of the European People’s Party (Christian Democrats), said on Wednesday that he fully supports that position, but does not believe it will be done, at least during this term.

“I think there are too many interests, both political and economic, to be solved in such a simple way. The European Commission will have to take the initiative and take other measures to achieve this, “he said.

Provided a schedule

The European Parliament voted on the own resources system (NIS) on Wednesday. “MEPs should speed up the procedure, allowing the EU to borrow € 750 billion for the recovery plan. With the approval of the NIS, it will be possible to start the ratification process in all 27 EU member states so that the Covid-19 recovery can begin as soon as possible, ”explains the EP website.

The NIS provides the legal basis for revenue from the EU budget.

“MEPs believe that the time has come to improve the architecture of the EU revenue system. 32 years after the introduction of contributions based on gross national income (GNI), there are three reasons why these resources are needed .

In the first place, the new income will finance the European Green Course, to close the holes that will result from the withdrawal of the United Kingdom. Second, common policies will generate benefits in areas such as the environment, carbon prices, and taxes. Third, the new revenue will increase the autonomy of the EU budget, “the draft document said.

In addition, the NIS will create the conditions for long-term repayment of borrowed funds. This would avoid a sharp increase in GNI-based contributions or a reduction in budget expenditures. The NIS measures are to be implemented as of January 1, 2021, so the EP must also adopt a binding agenda.

In September, the EP Budget Committee approved the following NIS measures:

1. In 2021, the state tax on raw plastics will take effect. The EU should also receive revenue from the emissions trading scheme.

2. In 2023, a tax on digital services should be introduced for large market players (such as Google and Facebook).

3. A carbon tax on imports should come into force in 2023. It would be paid by companies that import polluting products into the Community.

4. In 2024, a financial transaction tax is expected to be imposed on banks and other players in the financial sector.

5. Finally, the aim is to introduce a single corporate tax across the EU by 2026 for large multinational companies (such as those with an annual turnover of more than 750 million euros).

The Committee also supported the abolition of various concessions and adjustments to the EU budget in the field of membership of the Community. It is recalled that all national parliaments must approve both the Recovery Fund and the own resources system.

It is necessary, but it will be difficult

As Andrius Kubilius, a member of the Group of the European People’s Party (Christian Democrats), said at a remote press conference on Wednesday, parliament is still considering issues related to the new taxes.

“Now we have a common communication about the need to increase own resources through taxes. It is clear that this has to do with the Recovery Plan, which does not give a clear answer on how the debt will be paid, he said. – There are three options.

“First, the EU agrees to increase its own resources, which is vague, and it is too early to consider individual taxes today. Second, Member States are increasing their contributions, which is also difficult to imagine. Thirdly , the next multiannual financial perspective will include a debt repayment line in the budget, which will only increase. “

“The EU has not yet decided how the money borrowed from the Recovery Fund will be repaid,” summarized A. Kubilius.

Stasys Jakeliūnas, a member of the Group of the Greens / European Free Alliance, discussed current political commitments on the introduction of digital services and taxes on financial transactions.

“But there is a clear opposition from the United States. I am a member of the delegation with this country; it has been made very clear that there is a lot of resistance there, so it is not a coincidence that the President of the EC, Ursula von der Leyen, has mentioned that if there is no global consensus, the EU will find solutions early next year.

This can cause problems because then there is likely to be an answer. It will also depend on the results of the elections (President of the United States – Delphi). But in one case or another, apparently, that huge global company visiting the United States will resist, “he said.

However, S. Jakeliūnas expected that there would be some changes in this area.

“Emerging general debt instruments will also require sources of financing, and taxes are one of the main instruments. I hope, for example, that the harmonization of corporate tax bases (the case of Ireland) will be one of the challenges that they will be exceeded during this term.

A financial transaction tax is more realistic as it has already been introduced in some states. It may also be possible to reach an agreement at EU level on this. And because of the tax on digital services globally, it’s not realistic. The EU will wait to get inside its borders, but the United States will also receive a response, “said S. Jakeliūnas.

For his part, Petras Auštrevičius, a member of the Renew Europe group, said that even the proposed new taxes were not enough.

“The EU needs to move to a broader system of own resources as soon as possible. The dependence on new taxes should be greater than on state deposits, because there is always the question of how much it gives and how much it receives.

We want the gradual introduction of these taxes to start as soon as possible. Already in 2021, we should see a significant increase in the level of income from these taxes, because the loans (at least interest) will have to be repaid immediately, ”warned the interlocutor.