On May 27th, a €750 billion entitled “Next Generation EU” has been proposed. The plan would be made up of grants and loans for every EU Member State, to be repaid via a digital tax, carbon tax and/or a tax on recycled plastics. However, the European Central Bank is not expected to be a player in this plan, due to Germany’s top court ruling earlier this month that it violated the German constitution. The referenced link provides additional details.
On May 28th, as follow up, the EU Commission said it is ready to act on a digital tax if the OECD fails to achieve a global consensus on taxation of the digital economy. This statement, along with unilateral tax proposals, provides the impetus for OECD to act on this proposal by year-end, for which it has dedicated to fulfill this timeline.
The EU is committed to a global strategy for digital taxation and minimum corporate taxation, and will present their own plans if the OECD fails by act by the end of 2020.