European Economic Research Centre Warns Against National Isolation in Digital Tax Talks
The Centre for European Economic Research (ZEW) has cautioned against national solo efforts in the ongoing digital tax negotiations, urging a unified European approach instead.
ZEW President Achim Wambach emphasized the importance of a collective European stance, stating that national isolation at this stage is not advisable. He noted that the discussion on a digital tax has been ongoing for years and that a uniform European approach would be beneficial in preventing the fragmentation of the internal market.
In a separate development, the German Minister of Culture, Wolfram Weimer, announced plans to introduce a bill for a digital tax, describing a ten percent tax rate as moderate and legitimate.
The EU is currently in talks with the US over a comprehensive package of tariffs, taxes and export regulations, with digital taxes potentially being part of the negotiations. ZEW’s warning highlights the need for a coordinated European strategy in the face of these complex international discussions.