France lashes out after digital tax battle

French finance minister Bruno Le Maire took aim at Germany.

Most likely to be a supporter of the proposed EU digital tax, he will be disappointed by the level of opposition to the measure of a meeting of European finance ministers earlier this week.

The French are hoping the law will be back at a meeting next month – and are willing to have its implementation then suspended until the end of 2020.

It would be only a matter of course if the issue had not been tackled by the Organization for Economic Co-operation and Development (OECD).

Delaying the implementation is a serious concession by France – but it wants to act quickly and easily.

The measure needs unanimity to pbad and while the opposition of Ireland is a surprise, it appears Mr Mayor is now getting nervous about Germany's backing.

The ministers' meeting broke up with the proposal looking like a dead duck.

Ireland, Sweden and Denmark were opposed – and some countries said they would press ahead on their own.

Austria said that Kristian Jensen said: "It is very difficult to see an agreement on the digital tax because so many technical issues are not solved yet."

One such issue sprung from Germany. It sought a revision to the terms of the tax which would protect car makers Volkswagen from coming under the tax's scope.

The Mayor tried to put a positive spin on things, saying the debate was moving in the right direction. He made a joke about Finance Minister Paschal Donohoe, saying: "It just remains for me to offer a beer in a Dublin pub, and then I think we will be able to move towards a decision."

But on Friday his rhetoric was not so jocular. "Germany's failure to back a proposed EU tax on big internet companies would damage trust between France and Germany.

"The Mayor said in an interview with 'Les Echos'.

"That would be a breakdown of trust between France and Germany". Whether it has the desired effect in Berlin may well be moot.

Paschal Donohoe declined to specify whether it would be used against the tax, but it was concerned that it was concerned.

The opposition posed by other countries should be mitigated by the fact that they have been hinted at by anonymous officials in media reports.

Such reports no doubt served to focus Minister Donohoe's mind, but maintaining his opposition in any case. It looks like France may have lost this particular battle – but there will be many others.

The Mayor's strident comments against Germany are a reflection of that country's influence – and a concomitant growth in French power in Brussels.

German Chancellor Angela Merkel and Britain are on the way out, and they are looking for a better place to look at the ascendancy among the nations.

That could spark a bit of nervousness for Ireland, which is losing its biggest ally and has just helped the French on one of their flagship initiatives.

Irish Independent