Taxing Multinationals in the European Union

The 2021 Global Tax Deal and Beyond

Policy Brief

01/07/2021

The chances of global consensus on reforming the way multinationals are taxed have been revived thanks to the change in the US administration. The G7 agreement in June 2021 on both a global minimum tax and reallocation of global profits of multinationals to the market jurisdictions provides impetus towards a broader consensus at the G20 level in July, with a final deal expected by the end of 2021.

As countries look for revenues to fund a sustainable recovery post-COVID, there is a historic opportunity to stop profit shifting by multinationals and put an end to harmful tax competition between countries, which in turn would allow governments to make corporate tax systems more progressive. It can also provide the EU with an opportunity to move forward towards deeper European economic integration and progressive taxation of multinationals to ensure corporations contribute their fair share to the recovery post COVID.


This policy brief by Tommaso Faccio, in partnership with Friedrich Ebert Stiftung and TASC, looks at the ongoing international tax negotiations and the opportunity that a 2021 global agreement would bring to the European Union to play a leadership role in the modernisation of global business tax rules.

Read the Policy Brief

Network
Friedrich-Ebert-Stiftung
TASC
Find all related publications
Publications
22/11/2023

The macro-economic impact of the cost crisis

Lessons for Europe
18/09/2023

Making trade work for prosperity, people and planet

FEPS Primers series - Arancha González and Yanis Bourgeois
01/09/2023

Bidding farewell to workfare?

Recovery Watch series
09/06/2023

Governing the RRF

Recovery Watch series
Find all related events
Events
Upcoming
07/12/2023
European Parliament (Hybrid)

A blueprint for a Social and Green Deal

Follow-up Event of the Beyond Growth Conference
Past
06/11/2023
FEPS HQ

The future of work in Europe

Implications for equity and growth in Europe
08/11/2023
Brussels, Belgium

Social investments for resilient economies and societies

EU fiscal rules fit for future
Find all related news
News
29/11/2023

Economic Democracy

FEPS has launched an initiative on Economic Democracy
09/10/2023

Tax the rich

A European Citizens' Initiative
14/09/2023

Call for tender – Researcher on inflation

This call for tender closed on 03/10/23
20/02/2023

Let’s end involuntary unemployment!

European survey on the perception of unemployment and publicly funded jobs
Find all related in the media
In the media

“Trade doesn’t work in isolation from good domestic policies” Interview to Arancha González

by Borderlex 19/09/2023
Interview to Arancha González, former Spanish foreign minister, who released together with FEPS the new book entitled 'The Trade Handbook: Making Trade Work for Prosperity, People and Planet'

A szociális unió imperatívusza

by Új Egyenlőség 09/09/2023
'The imperative of Social Union'. Article about FEPS book 'Europe’s Social Integration: Welfare Models and Economic Transformations' by László Andor.

Após 66 anos de adiamentos, a barragem do Pisão entrou em contra-relógio

by Pùblico 19/08/2023
'After 66 years of postponements, the Pisão dam has entered a race against time' Pùblico's article mentions FEPS Policy Study 'Governing the RRF'

Ukrainian economy and society: whither the (postwar) country?

by Commons 16/06/2023
In Commons' article, Yuliya Yurchenko, co-author of FEPS’ book 'Europe and the war in Ukraine', outlines the consequences of the Russian invasion of Ukraine for the Ukrainian population and the plans needed for Ukraine's recovery.