To address this complaint, the Commission is considering excluding firms with dwindling profits — including potentially Germany’s big automotive sector — from the scope of the tax.
Currently, CORE applies in the same way to EU and foreign firms operating in the bloc. The Commission fears that taxing foreign firms in the EU at a higher level than European ones might violate international trade rules, said one of the officials.
Tax confessionals
The rotating Council presidency of the EU, held by Ireland, which is steering the budget negotiations, is planning to put forward a new package of taxes ahead of a leaders’ summit in October.
In addition to CORE, the Commission proposed last July a new levy on carbon imports into the EU, known as CBAM, as well as taxes on carbon emissions, non-collected electronic waste and tobacco revenues.
While most EU countries support CBAM and the e-waste tax, the other ideas have been met with strong opposition.
To break the deadlock, the European Parliament suggested in spring new taxes on online gambling, crypto firms and digital firms that were backed by some EU governments.