The European Commission suggests adopting common fiscal rules by qualified majority in the long term. A project that, however, must be adopted… unanimously.
The measure aims to overcome the deadlock, again observed in December with the failed project of taxing digital giants, as soon as it involves states reaching an agreement on taxation, one of the last prerogatives that allows them to compete with each other.
Only an unlikely treaty reform would make it possible to switch the EU fiscal policy from the unanimity rule to the qualified majority rule. However, a so-called “passerelle” clause of the Treaty on European Union allows the states to unanimously decide to legislate by qualified majority in a given area of competence.
It is this clause that the Commission suggests implementing, starting with the most consensual, obvious topics, such as combating tax fraud and tax evasion or administrative initiatives for businesses.
The second step would involve fiscal measures designed to support strategic objectives such as combating climate change, public health, or environmental protection.
The third step would allow the modernization of already harmonized EU rules, such as those related to VAT.
Finally, the fourth would address major fiscal projects such as the Common Consolidated Corporate Tax Base and a new system of taxation for the digital economy.
The Commission, whose mandate will end next May, can only invite the states to discuss and “approve” its roadmap.
The post-election period after next May risks being dazzling and… turbulent!
