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Vestager: EU should 'act alone' on digital tax if no global deal reached in 2020

The EU should agree on a bloc-wide digital tax if no global standard is set by the end of 2020, European Commission Executive Vice President-delegate Margrethe Vestager said.

"If no effective agreement can be reached by the end of 2020, the EU should be willing to act alone," said Vestager in written answers to questions from EU lawmakers published Sept. 27. European Commission President-elect Ursula von der Leyen had earlier put Vestager in charge of the bloc's digital policy and competition.

Meanwhile, the former Italian prime minister and EU commissioner-designate for the economy, Paolo Gentiloni, pledged to prevent member states from vetoing decisions related to taxation by enforcing majority voting on such matters. Taxation is one of the last policy areas where decision-making fully relies on member states' unanimous decision, he noted, adding that new emerging challenges have exposed the systems' limits in recent years.

Additionally, Gentiloni advocated for fiscal leeway on member states' budgetary requirements to revive the bloc's sputtering economy, saying he would make "full use of the flexibility" allowed in the EU's Stability and Growth Pact.