New Eurogroup boss expects higher taxes for digital corporations

Ireland's Finance Minister Paschal Donohoe, the newly elected President of the Eurogroup, assumes that digital corporations like Apple and Google will be taxed more heavily in the future.

“The taxation of large digital corporations will change. Digital companies will pay more taxes, ”said Donohoe of the“ Süddeutsche Zeitung ”(Thursday edition).

Corporations like Apple and Google are criticized for paying hardly any taxes in Europe. The EU Commission could therefore propose a special tax for Internet companies - a project that the Irish government had long rejected because Google and Apple have large branches on the island. Such a digital tax must be based on an agreement at the OECD, according to Donohoe. Discussions about global tax reform are ongoing at the industrialized countries organization. For him at the moment the only question is how a digital tax can be implemented fairly, said the Irish finance minister. "And I think we can do it. For that we need a global foundation at OECD level." As head of the Eurogroup, Donohoe wants to advance two issues in particular: "During my tenure as President over the next two and a half years, we will work particularly towards to strengthen the banking union, that is, to remove barriers to a common banking market, and to coordinate our budgetary policy, ”he said.

"Because with a coordinated budget policy, governments can simply achieve more." Such a coordination is "of inestimable value for the recovery of the economy after the pandemic". Donohoe is aware, however, that progress on the banking union will be difficult: "It will be a challenge, I do not underestimate it, but the pandemic has changed the context for such reforms: they help to sustain and widen the recovery and making economies more resilient. "