French President Emmanuel Macron has claimed France partial credit for the international deal on global corporation tax, which will be endorsed by leaders of the world’s seven richest countries at the G7 summit in Cornwall this weekend. end.
“France has been fighting for four years to correct the deep injustice” of the international economy, Macron told reporters at the Elysee Palace. This injustice stems “from the fact that large groups earn super-profits because digital activity allows them to optimize themselves so as not to pay their fair share of tax”. It was “inexplicable for our taxpayers and compatriots, and unfair for our businesses… We carried this agenda. We fought for it.
Mr Macron accused the Trump administration of blocking efforts to put in place an international corporate tax regime through the OECD for four years. He said that France had fought the same fight with the European Union. Several Member States, such as France, have instituted national taxes on the profits of digital giants in their countries, “to move forward. This is what France has done. She’s comfortable with it.
Former US President Donald Trump imposed sanctions on French wine and a number of other French products in retaliation. Mr. Macron described the French companies concerned as “collateral victims of our sense of responsibility” and declared that it was important to remind them and to thank them “at a time when we register a victory for this international tax”.
The Biden administration has suspended but has not formally lifted sanctions imposed by Mr. Trump. “There is no longer a trade dispute since we are all in agreement,” Macron said. The new US administration “shares most of our convictions,” he added.
Mr Macron expects France to earn between € 5 billion and € 10 billion a year from the new international corporate tax regime, while European economies are expected to earn around € 50 billion. He said the deal would come into effect “around 2025”. Other officials cited a shorter deadline.
Finance Minister Paschal Donohoe, meanwhile, said the Treasury could lose € 2 billion a year.
The deal “complements the work that began at the time of the 2008-2010 financial crisis” and which ended banking secrecy earlier, Macron said. “This is a massive step forward towards a fairer and more efficient globalization.