The EU fails in its common strategy for the 'Google rate' and shelters it until March

The EU fails in its common strategy for the 'Google rate' and shelters it until March

France and Germany surprise "at the last minute" with a less ambitious proposal that neither Spain nor the European Commission share

  «Minimum». That is the term that could best define the results of the meetings that the European Union's Ministers of Economy and Finance -both in their Eurogroup format (the countries that share the currency) and in the inclusive (the whole club) format - maintained the Monday and Tuesday in Brussels. This limited pact is the back door that has now been opened at Ecofin so that countries such as Spain can activate the tax on digital multinationals in the short term, better known as the 'Google rate', and without waiting for a common strategy that threatens almost to be eternalized due to lack of internal unity and the excuse of trying to go hand in hand with the OECD and also the G-20.

 But the truth is that, in the eyes of many, the strategy of taking a firm step in the European Union on taxation has failed again. For the moment, the ministers corner it until March to study a formula of France and Germany, presented "at the last minute" -although part of it was discounted when seen the last movements of the Paris-Berlin axis-, and less ambitious than the last one that was in the table, that of the European Commission (EC). If accepted, it would end up yielding to a decaffeinated idea to 'bring' the Nordic countries and Ireland - the main paradise of technological giants operating in Europe, especially those of the USA, thanks to its low taxation -, which block the tax .

To lift the current veto of these countries - this Tuesday, however, they did not succeed - the two great European powers defend that the new tax only applies to advertising 'online'. Faced with this cut of objectives, the Community Executive advocated charging the 3% tax rate not only to this activity, but also to intermediation services and income from the sale of data , the great workhorse of war that the digital giants are undertaking and that will increase in the future.

It is no wonder that Frenchman Pierre Moscovici, the European Commissioner for Economic and Financial Affairs, will clearly express his "disagreement" with Ecofin. "The fiscal injustice is there and must be corrected," stressed the community leader, aware of being in front of a controversial issue and of clear public importance.

Spain will continue

That same thesis is shared by the Spanish Minister of Economy and formerly Director General of Budgets of the EC itself, Nadia Calviño. "We will propose the rate with a broader scope that coincides with that of the Commission, since the harmonization of minimums that has been raised allows us to be more ambitious." That is the gap left by the Franco-German reductionist thesis .

That is why the Executive of Pedro Sánchez keeps his road map. "I have stated that the Government of Spain intends to move forward," Calviño confirmed. Actually, it's urgent. At the end of the day both this new tax and the one that would apply to financial transactions (ITF, better known as the "Tobin tax") are two key sources of revenue in the budget project sent from Moncloa in October.

But it is a draft that generates uncertainties . The Eurogroup report on Monday on all public accounts of the 19 partners of the single currency club reminded him again. In particular, it demanded "additional measures" to Madrid for its risk of "breaching the European rules" of fiscal discipline.

France, Belgium and Portugal are in the same delicate situation. The Minister of Economy, however, tried on Tuesday to reduce the effect of that budget warning. "Nobody appreciates risk to the sustainability of the debt in the medium term," he insisted, while preferring to speak of a " general positive tone and mood " from his colleagues.

From the Ministry of Finance, while, we continue to move forward in the design of the new rate. Thus, sanctions of up to 0.5% of its annual turnover - and a maximum of 15,000 euros for individuals and companies without economic activity - are envisaged for those who conceal the IP address (an internet protocol with which they are geographically located the devices) from where they carry out their activities, since many of them do not even have physical headquarters.

«Exempt» the great technology

"This weak proposal from France and Germany exempts big technology from responsibility". Oxfam Intermón, one of the most active non-governmental organizations against the 'traps' in taxation, criticized on Tuesday with harshness the lack of a firm agreement in the EU regarding the so-called 'Google tax'.

In the opinion of those responsible for the NGO, it is "a serious blow to fiscal justice", since the current tax regulations that "allow large companies not to pay the taxes that would correspond to them" will be maintained, while "the citizens of on foot they pay the price ».