At the end of 2021, the European Commission (the EC) released a “Proposal for a council directive on ensuring a global minimum level of taxation for multinational groups in the Union”.
In the last weeks, we saw debates between the state and the municipalities, which discussed options to increase the resources for local development, but once again these evolved in the direction of centralized solutions.
The tax system should not be used to implement social policy objectives. The tax system should be purely a mechanism that collects from citizens and companies, in the least distortionary way, the least amount of money necessary for the functioning of the state, the financing of its obligations and its policies.
The general objective of the Directive is to ensure that all EU workers are protected by minimum wages, which is essential to guaranteeing adequate working and living conditions regardless of the place of work or residence.