Turn progress on international taxation into concrete agreement, PES FEN urges

01/07/2021

PES Financial and Economic Network meeting by videoconference

PES Financial and Economic Network meeting by videoconference

It is time to finally reform long outdated international tax rules, the Financial and Economic Network (FEN) of the Party of European Socialists (PES) stated today.

Thanks to the efforts of socialists and democrats, the G7 agreement on a minimum effective corporate tax rate and the upcoming European Commission proposals on sustainable taxation put a more progressive tax system within reach.

The PES FEN – composed of representatives of PES member parties, MEPs, NGOs and other stakeholders – met online today to take stock of developments on taxation, the recovery and the EU’s fiscal rules.

Chair of the FEN and President of the Foundation of European Progressive Studies Maria Joao Rodrigues said:

“We are pushing for international tax rules that are fit for purpose for our modern-day economies and business models. The G7 agreement is a historic step forward, but the deal is not done yet.

“The challenge is to find a workable agreement. Not every country is on board yet and the possibility of exemptions is still on the table, which could undermine what we are working for.

“We are calling for an agreement so fair minimum corporate taxation can be achieved. World leaders must hear the warnings of citizens. After so many tax scandals involving giant multinationals, people will not tolerate the unfairness of the current system forever. Especially not when our communities need revenue to fund health systems and repair the social and economic damage wrought by COVID-19.”

Next week, G20 Finance ministers will meet to discuss a minimum effective corporate tax. The PES FEN meeting took stock of the latest developments and exchanged on best practices at national level. Last weekend, the PES Presidency backed a resolution calling for fair global tax rules.

With the first national recovery plans being approved by the European Commission, the meeting also discussed progressive priorities for implementing the recovery and resilience plans. They must support a progressive approach that alleviates the worst consequences of the pandemic on our societies and economies, and secures a dual green and digital transition which leaves no one behind. It is essential the adoption process is as fast and effective as possible, given the urgency for funds to reach economies and citizens.

The Recovery and Resilience Fund has only been possible thanks to Commissioner Paolo Gentiloni, as well as the S&D and progressive governments. It comes alongside other key decisions pushed by socialists, including the triggering of the General Escape Clause, the SURE programme, and the Next Generation EU.

The FEN also exchanged on the update of the EU’s fiscal rules and the need to ensure sustainable fiscal governance and economic growth. MEP Margarida Marques gave an update on the state of play in the European Parliament on the Report on the review of the macroeconomic legislative framework for a better impact on Europe’s real economy and improved transparency of decision-making and democratic accountability.

The meeting exchanged on a draft PES publication on taxation.

The meeting was attended by:

  • Maria Joao Rodrigues, Chair of the PES Financial and Economic Network, President of FEPS
  • Christophe Rouillon, President of the PES Group Secretariat in the European Committee of the Regions
  • Pedro Marques MEP, S&D Group VP and PES/S&D Coordinator for the implementation of our progressive Commission Work Programme, S&D Group, PES
  • Paul Tang MEP, Chair of FISC Subcommittee, PvdA, Netherlands
  • Jonas Fernandez MEP, S&D ECON Coordinator, PSOE, Spain
  • Margarida Marques MEP, Rapporteur on Economic governance INI, PS, Portugal
  • Erik Bergkvist MEP, SDP, Sweden
  • Victor Negrescu MEP, Vice-president, PSD, Romania
  • Estelle Göger, European Commission
  • Erik Burckhardt, European Commission
  • Wouter Lips, Advisor for budget & economics, Vooruit, Belgium
  • Sinisa Hajdas Doncic MP, Vice-President of SDP Croatia, SDP, Croatia
  • Andreas Psaras, Secretary of EDEK's Financial Committee, EDEK, Cyprus
  • Sofia A. Hansen, Political advisor and international consultant, Social Democratic Party, Denmark
  • Philippos Sachinidis, Former Minister of Finance, Movement for Change/Pasok, Greece
  • David Rinaldi, Director of Studies and Policy, FEPS
  • Matthieu Méaulle, Advisor, European Trade Union Confederation
  • Luca Fossati, Committee on Economic and Monetary Affairs, Political Advisor, S&D
  • Olga Fotinou, Political Adviser, PES Group in the CoR
  • Vladimir Zizka, Head of Office to Joachim Schuster, European Parliament
  • Yonnec Polet, Deputy Secretary General, PES