Debate surrounding a proposed digital services tax targeting US internet companies is facing cautious assessment within German political circles. Jens Spahn, parliamentary group leader of the Christian Democratic Union (CDU), has expressed reservations regarding the planned levy, signaling a more measured approach than previously indicated.
The idea of a digital services tax, recently announced by Minister of State for Culture and Media, Wolfram Weimer, aims to require internet companies, such as Amazon and others, to contribute up to ten percent of their advertising revenue. While acknowledging the disparity between the substantial business conducted by these companies within Germany and the relatively low tax payments they currently make, Spahn emphasized that the implementation of such a tax remains a matter of ongoing discussion.
A key factor influencing the decision will be the outcome of negotiations with the United States. Spahn cautioned against escalating tensions, stating that a tit-for-tat response would ultimately be detrimental, particularly for Europe.
Furthermore, Spahn called for increased flexibility in ongoing customs negotiations with the US. Recognizing the need for visible progress in dealings with the American administration, he suggested a willingness to compromise, even if it involves concessions such as foregoing tariffs on US automobiles.
Critiquing the negotiating style of European officials, Spahn suggested a need to adapt to a more streamlined approach. He noted the American preference for concise, two-page agreements, contrasting it with the extensive, detail-oriented documentation favored by European negotiators, implying that a shift in strategy might be beneficial.