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Home arrow newsitems arrow EU Trade Commissioner Hogan and MEPs warn USA not to overreact to Digital Tax, but pursue Dialogue

EU Trade Commissioner Hogan and MEPs warn USA not to overreact to Digital Tax, but pursue Dialogue

Written by ACM
Thursday, 19 December 2019

*Strasbourg/EU Parliament/Angelo Marcopolo/- In the 1st ever Debate in EU Parliament on US possible reactions to Digital Tax, New EU Commissioner for Trade, Phil Hogan from Ireland, warned USA not to overreact, but Better pursue Dialogue through OECD and/or other ways.      



- "it would be a matter of significant concern to the (EU) Commission  if the US should decide to introduce tariffs against the EU", in an "Unilateral" move, "for the 1st Time" in History,

- Similar methods "have previously been used only in response to unfair trading practices in China’s non-market economy in order to justify US tariffs against China", Hogan pointed out.

- But, here, on the Contrary, it's about "ensuring that Digital Companies pay their Fair Share of Taxes", he stressed. Already since 2018, EU Commission had "made 2 Proposals" : (A) "a Short-term Target", with "Digital Services Taxation", and (B) "a Long-term Comprehensive Solution", by "adjusting the Definition of a Permanent Establishment... to include Digital ...for Corporation tax", he Reminded. EU Parliament "supported the Digital ServicesTax", "Pending a Comprehensive Solution", he added. Because there are "increasing pressures ... faced by Member States to act, given the risk that their Corporate tax base is being Eroded significantly over Time and the perceived Unfairness of the situation", he explained.

AnOther Possibilty is to "accelerate Discussions at the OECD level to find a Global Solution on taxation issues, including a global Digital service taxation"

- But, Meanwhile, "unfortunately", the EU "Council did Not Find Agreement....on the Beginning of 2019", so that "                            "France and some other Member States then, proceeded to adopt or prepare National Digital service Taxes".

=> Then, "the USA started an ... Investigation on July 2019", which "is the 1st US investigation into a digital service tax, despite France being Neither the 1st, Nor the Only country that has adopted it".

- However, on August 2019, "on the margins of a G7 meeting in Biarritz", Presidents Trump and Macron Agreed "that France would continue levying the tax and would Reimburse companies if subsequently there was a difference between the French tax and the OECD Global solution'.

- But, "Despite that", "the US continued with its investigation with a negative determination on 2 December 2019, claiming that France’s digital service tax is unreasonable, discriminatory and burdens or restricts US commerce" : "This ...opens the route for Unilateral Measures, under US Law".

>>> But, the EU "Commission calls upon the US Not to break its obligations under international Law.... President von der Leyen made clear that the EU will Act and React as One, Against any                                          Unilateral measures outside the multilateral trading system. The EU will collectively Defend a Member State, If a trading Partner takes Unilateral trade Measures Against it !", he Warned.

- "It would be the 1st time that the US has used this instrument Against the EU, since the WTO was founded in 1995" ,

while, on the Contrary, "the US Statute envisages further Discussions as an option"... "So, we in the (EU) Commission will Keep on Pushing for these Discussions", Hogan concluded Today.


+ In the subsequent Debate, French MEP Marie-Pierre Vedrenne, Speaking on behalf of the Groupe "ReNew", Criticised a "World Trade in "Troubled Waters", and Pleaded for "any Balanced World Trade Based into Rules".

- But, in Fact, we (EU) Faced Taxes on Aluminium and Steel, our Agriculture producers are under Customs, on the occasion of the Affair "Airus/Boeing", and Nowadays, there is also a Threat for Various "Heavy" measures Against Trade, she Criticized.

- It's Not True that this Digital Tax would be "Discriminatory". It only represents a Juste Remuneration for Digital services, she found.

=> EU searches a Negociated Solution inside the OECD, and we Support that. We don't want any Trade War. More Tensions will only provoke more Losers. We want Better Dialogue !", she concluded.=

+ "And EU Solidarity !", added also Irish ChristianDemocrat MEP Maria Walsh.









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 In Democracy, the forthcoming choices for EU's Top Jobs, as the New EU Parliament's President, new EU Commission's President (+ probably EU Council's President, EU Foreign Minister, etc) should be made according to EU Citizens' Votes in June 7, 2009 European Elections, and main EU Governments' strategic policies.

At the heart of the biggest EU Countries, in France and Germany, EU Citizens clearly voted for a renovated, non-technocratic but Political Europe based on Values, declared explicitly incompatible with Turkey's controversial EU bid.

This main choice was also supported in several other small or medium EU Countries, such as Austria (cf. promise of a Referendum), Spain (cf. EPP program's reservations vis a vis Enlargment), etc., while EPP Parties won also in Poland, Hungary, Cyprus, etc.

In other Countries, whenever Governing coalitions didn't make these choices or eluded them, continuing to let a Turkish lobby push for its entry into the EU, they paid a high price, and risked to damage Europe, by obliging EU Citizens to massively vote for euro-Sceptics whenever they were the only ones to offer a possibility to promise  real change and oppose Turkey's demand to enter into the EU :

It's for this obvious reason that British UKIP (IndDem) succeeded now (after many statements against Turkey's EU bid) to become Great Britain's 2nd Party, unexpectedly growing bigger even than the Governing Labour Party, as well as the Liberal party  ! Facts prove that it's not an isolated phenomenon : A similar development occured in the Netherlands, where Geert Wilders "Party for Freedom" (PVV) became also the 2nd biggest in the country, (after EPP), boosting the chances of a politician who had withdrawn in 2004 from an older party "because he didn't agree with their position on Turkey". And in several other EU Member Countries, even previously small parties which now focused on a struggle against Turkey's controversial demand to enter in the EU, won much more or even doubled the number of their MEPs (fex. Bulgaria, Hungary, Greece, etc).

On the contrary, whenever Socialist and oher parties were explicitly or implicitly for Turkey's controversial EU bid, they obviously lost Citizens' votes and fell down to an unprecedented low.

In consequence, EU Citizens clearly revealed their main political choices, in one way or another : They voted to change for less Bureaucracy, but more Politics and Values in a Europe really open to EU Citizens, but without Turkey's controversial EU bid.

Recent political developments are obviously different from the old political landscape which existed in the Past of 1999-2004, when Socialists based on Turkish 1% vote governed undisputed not only in Germany, but also in the UK, Greece and elsewhere, France followed old policies decided when it had been divided by "cohabitation", before the 3 "NO" to EU  Referenda since May 2005, before Merkel, before Sarkozy, etc.... before the surprises of 7 June 2009 new EU Elections.

If the current candidates to the Top EU jobs promise and guarantee to respect People's democratic choices, OK.

Otherwise, Europe must find new candidates, really motivated and able to implement these democratic choices of the People.

The beginning of crucial, final Decisions are scheduled for the 1st EU Parliament's plenary session in Strasbourg, in the middle of July, and they could be completed towards the October session, when Lisbon Treaty's fate will have been fixed.

See relevant Facts also at : http://www.eurofora.net/newsflashes/news/2009electionsandturkey.html



2009 EU Elections were won by Parties against Technocracy and Turkey's controversial EU bid, while the 1999-2004 Majority Abstention trend decelerated. What should be done in 2009-2014 ?


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