Monday

2nd Oct 2023

Juncker seeks to bypass vetoes on tax reform

  • Juncker told France's Liberation newspaper that he has been "weakened" by LuxLeaks (Photo: europarl.europa.eu)

European Commission president Jean-Claude Juncker has indicated he will try and get around member states’ veto powers over fiscal issues when he proposes new laws to clamp down on tax avoidance.

In an interview with the Frankfurter Allgemeine Zeitung, he said he may use a majority vote to get a forthcoming law on the automatic exchange of tax rulings (letters that give companies favourable tax conditions) passed.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

“I have not excluded that we change the rules using a qualified majority (of member states). I will leave the technical and legal aspects aside now but it would affect aspects of administrative cooperation,” he said.

When he initially presented the idea for the new law last month, he noted it would need unanimous agreement by governments – a requirement that essentially ensures the death of any given measure before it is even proposed.

He maintained a similar tax line just ahead of his commission's swearing-in ceremony, saying that fiscal harmonisation is an "absolute necessity".

He added that the issue should not be subject to the will of those trying to escape paying a tax high enough to respond to "minimum ethical and moral standards".

Juncker made the remarks after being buffeted by fresh revelations, published late on Tuesday, about the extent of Luxembourg’s tax avoidance scheme for multinationals – schemes set up while he was prime minister.

While initially keen to avoid talking to press about the first set of revelations, which came out a few days after he started his job, he has since been more forthcoming - speaking to a series of newspapers ahead of and around the 'LuxLeaks' publications.

The revelations have, by his own admission, “weakened” him.

But his job is not considered to be in danger, as the consensus in the European Parliament - mirrored by silence in the EU capitals - has been that it is more important to move on than to create an institutional crisis by topping the EU commission and its chief.

MEPs - who last month voted against a censure vote on Juncker and who decided not to launch an equiry into the matter - are keen to extract some legislative concessions, however.

Gianni Pitella, head of the centre-left Socialists, on Wednesday said dealing with tax fraud must be an "absolute priority" in the commission's work programme, due to be presented next week.

"If this is not done there will be no consensus or political trust from our group," he added.

And with support in the European Parliament so far clear, Juncker is maintaining a combative line in his interviews.

When asked by FAZ whether he would step down if the commission's competition department found that Luxembourg had breached EU state aid rules with its sweetheart deals for Amazon and Fiat Finance, he was dismissive.

"Has a government member ever stepped down because the EU has found state aid to be inadmissible?", he asked.

He noted that while he doesn't personally think his credibility has been damaged, his public image has "suffered".

He also questioned the timing of the revelations, telling journalists ahead of his oath-taking ceremony on Wednesday that the new leaks are "not coincidence".

Spain pushes for taxation debate at EU summit

It was supposed to be all about investments and Russia, but the issue of tax avoidance is likely to creep onto the EU summit agenda, as a letter from the Spanish Prime Minister shows.

Analysis

Slovak's 'illiberal' Fico victory boosts Orban, but faces checks

Fico has the potential to shift Slovakia from the West and jeopardise the EU unity in its stance against Russia's Ukraine war. His victory could also have a domino effect in central Europe and empower of other far-right, populist movements.

Opinion

Why EU Commission dumped Google's favourite consultant

This should be a wake-up call to ensure consultancy firms with a vested interest are permanently excluded from public tenders. The close relationship between the EU's competition authority and economic consultants poses a serious risk to its independence.

Latest News

  1. Hoekstra faces tough questioning to be EU Green chief
  2. Frontex shared personal data of NGO staff with Europol six times
  3. Why EU Commission dumped Google's favourite consultant
  4. Slovak's 'illiberal' Fico victory boosts Orban, but faces checks
  5. European Political Community and key media vote This WEEK
  6. Is the ECB sabotaging Europe's Green Deal?
  7. The realists vs idealists Brussels battle on Ukraine's EU accession
  8. EU women promised new dawn under anti-violence pact

Stakeholders' Highlights

  1. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  2. International Medical Devices Regulators Forum (IMDRF)Join regulators, industry & healthcare experts at the 24th IMDRF session, September 25-26, Berlin. Register by 20 Sept to join in person or online.
  3. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  4. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA
  5. International Medical Devices Regulators Forum (IMDRF)Join regulators & industry experts at the 24th IMDRF session- Berlin September 25-26. Register early for discounted hotel rates
  6. Nordic Council of MinistersGlobal interest in the new Nordic Nutrition Recommendations – here are the speakers for the launch

Stakeholders' Highlights

  1. Nordic Council of Ministers20 June: Launch of the new Nordic Nutrition Recommendations
  2. International Sustainable Finance CentreJoin CEE Sustainable Finance Summit, 15 – 19 May 2023, high-level event for finance & business
  3. ICLEISeven actionable measures to make food procurement in Europe more sustainable
  4. World BankWorld Bank Report Highlights Role of Human Development for a Successful Green Transition in Europe
  5. Nordic Council of MinistersNordic summit to step up the fight against food loss and waste
  6. Nordic Council of MinistersThink-tank: Strengthen co-operation around tech giants’ influence in the Nordics

Join EUobserver

Support quality EU news

Join us