EU SUMMIT SEEKS POSITION IN TRADE DISPUTE WITH US
However, the two-day meeting in the Belgian capital will also be about a common position with Russia and Turkey over the fighting in Syria. The alleged Russian responsibility for the poison attack in the British Salisbury is to be discussed.
The 28 EU leaders want to decide today on their summit in Brussels a response to the threatened by the US protective tariffs.
EU COMMISSION WANTS TO ASK GOOGLE & CO MORE TO CHECKOUT
The European Commission wants to close with new legislative proposals tax
These corporations were dizzyingly fast, but the boom is passing the treasury, EU Finance Commissioner Pierre Moscovici said Wednesday in Brussels. “Digital companies make big profits in one click without being physically present in one country.” This legal vacuum would now be offset by transitional rules with taxes on sales and at the same time driving forward a long-term solution. The Ministry of Finance in Berlin welcomes the initiative.
The bottom line is that Internet companies operate their businesses from one central location – mostly from the US West Coast – for the entire world. However, the current tax law is one hundred years old and designed to tax firms by location or manufacturing facility in their country, Moscovici said. In global online companies, however, there is often no firm spinoff in the EU countries, which is why they could hardly be taxed. As a result, states lost considerable revenue. “The digital revolution has turned our economy upside down.” The tax rate for Internet companies is at ten percent on average half as high as the conventional companies.
SAME TAXES FOR GOOGLE AND AUNTE EMMA
That is why the Commission is launching two legislative proposals. The first is aimed at creating EU-wide rules that allow member states to collect taxes from companies that are not domiciled in the countries. Since the way to a fundamental new regulations of the levies for Internet concerns is far, the Brussels authority suggests also a so-called equalization tax. According to the online companies for the time being to pay taxes on sales from certain businesses such as the sale of digital ads. At a rate of three percent, the member states could use it to make an additional five billion euros a year in levies. Next, the European Parliament and the 28 EU member states must approve the legislative package. Unanimity is required for tax issues. Some countries have already signaled resistance.
The topic was at a digital summit in Estonia in the autumn center. Germany and France led a group of ten EU countries that demanded greater taxation.
FOR THE FIRST TIME IN OVER 60 YEARS, AUSTRIA IS AIMING FOR BLACK ZERO
“We are now tackling the end of debt policy,” announced Finance Minister Hartwig Löger (ÖVP) on Wednesday at his first budget speech in parliament. Since 1954 Austria has always spent more than it received. The mountain of debt of the republic add up to about 290 billion euros, criticized the political cross-beginner, who was former manager of a Vienna insurance. The coalition of the conservative ÖVP and the right-wing populist FPÖ, which has been governing since December under the leadership of 31-year-old Chancellor Sebastian Kurz, now wants to put a brake on spending and save a total of 2.5 billion euros.
In the current year, however, the state with its 8.8 million citizens continues to spend more than it receives. Revenues of around € 76.4 billion are offset by expenditures of around € 78.5 billion. Next year, the relationship is set to change: the federal government then expects a surplus of 541 million euros.