In an exclusive interview with Paperjam, the commission president and ex-Luxembourg prime minister, said:
“it is an historic mistake to not want to tax at the appropriate levels the profits of multinational companies which act globally and don’t pay the taxes they owe.”
Juncker said that the current Luxembourg government has been blocking commission proposals on the taxation of the digital economy.
Pierre Gramegna, Luxembourg finance minister, has previously stated that it was more important to keep a level-playing field at the OECD in this global economy rather than regulating at the EU level.
At the 19 October European Council meeting, Luxembourg, along with other countries, had managed to include in the conclusions that it was “important to ensure that all companies pay their fair share of taxes and to ensure a global level-playing field in line with the work currently underway at the OECD.”
The European Commission has published a Common Consolidated Corporate Tax Base proposal, and public consultations are still underway.
Juncker warned the current Luxembourg government that “if it keeps saying no, it won’t have any influence on the architecture of this globalised world.”
He added, referring to the French president:
“I don’t really understand why the Luxembourg government does not follow Macron, as it professes an intimate friendship.”
Then Juncker stated that:
“we need a coordinated European approach to avoid national approaches which could lead to new obstacles and loopholes.”