Can the EU tax global corporations despite Trump opposition?

Good morning. Today, the EU’s top tax official tells our finance correspondent that Brussels could go it alone on a new global corporate tax despite the US withdrawing from the coalition. And Laura reports on two days of gun shootings in Brussels.

Have a great weekend.

Tax the rich (companies)

The EU is weighing options on how to tax US tech giants despite President Donald Trump ripping up a global deal on corporate taxation — and threatening those who want to implement it, writes Paola Tamma.

Context: More than 135 countries, including EU member states and the US, had signed up to a global deal on imposing a minimum tax on some of the world’s most profitable companies where they make revenue rather than where they are headquartered, a move that would hit many US tech companies.

“We find it unfortunate that the US withdraws [from the deal],” Hoekstra told the Financial Times. “I continue to see significant value not just for Europe but for the world at large.”

The agreement, which was brokered by the OECD in 2021, already ran into hurdles under the previous US administration, and was dealt a final blow when Trump adopted an executive order reneging it fully, and threatening legal action against jurisdictions which tax American companies.

Trump’s move to trash the agreement could prompt individual countries to implement their own levies. A number of EU countries already have their own digital taxes; Belgium’s new government recently vowed to introduce its own if the EU does not find a collective solution.

Hoekstra said that the logic for the agreement “has not changed”, adding: “What we ask from all sorts of companies in more classic domains is also fair to ask from companies in this specific domain of tech.”

Member states and the European Commission would have discussions on how exactly to go forward, he said, adding that the commission still hoped to “constructively engage with the Americans to see . . . where they see room to continue to collaborate”.

If the US does not alter its course, the EU could try to seek a global deal without the US, or propose a levy applied by its 27 member states.

Speaking in front of a parliamentary committee yesterday, Hoekstra said that the “EU should not deviate from its course of implementing the agreement”.

Chart du jour: Cut the cord

The Baltic states will sever the last major energy link to Russia and become part of the EU’s electricity network on Sunday.

Shots in the dark

Belgium’s new prime minister Bart De Wever has his work cut out after two consecutive days of possible gang-related shootings in Brussels, writes Laura Dubois.

Context: De Wever is no stranger to drugs-related crimes, as he used to be the mayor of Antwerp before his move to the capital. He has previously called for the deployment of the army to tackle cocaine traffic in Antwerp’s port, the second-largest in Europe.

Shots were fired on the streets of Brussels two days in a row, in what the authorities believe could be a turf war between drug smugglers.

Early yesterday morning, a shootout occurred near the Clémenceau metro station in the south-west of Brussels. One person was shot in the leg and transferred to hospital, according to the Brussels prosecutor’s office. Authorities were still looking for the suspected shooters.

The day before, shots had been fired in the morning outside that same metro station, the prosecutor said. Security camera footage published online shows two men, one armed with a machine gun, firing shots outside the station entrance.

No one was injured, but the two suspects got away through the metro tunnels, according to the authorities, who shut down the trains for several hours. Yesterday, one suspect was detained, according to local media.

“The investigation will determine if there is a link” between the two shootings, the prosecutor said.

De Wever, who has in the past issued combative statements in relation to incidents in Antwerp, was yesterday stuck in a parliamentary debate, during which he urged the Brussels region to finally form a government in order to tackle the issue.

His new federal government, which was sworn in on Monday, has made security a priority. While elected on a promise to streamline the budget, he has pledged to exempt the police, justice and defence authorities from any cuts.

What to watch today

1. Second day of college of European commissioners’ visit to Poland.

2. Sweden’s Prime Minister Ulf Kristersson and other officials attend Nato battalion handover ceremony in Latvia.

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