German Finance Minister Olaf Scholz warned on Tuesday that Britain's European Union (EU) exit would lead to a significant increase in the economic risks to the bloc.
Speaking during the budget consultations that are currently under way in the Bundestag, the German federal parliament, Scholz stressed that eurozone members would account for more than 85% of the EU's total GDP per Brescia and, in fact, should consequently show even tighter budgetary discipline .
Faced with these risks, the German minister has developed a package of measures with his French counterpart, Bruno Le Maire, in order to transform the current European Stability Mechanism (ESM) into a truly European Monetary Fund (EMF). Scholz hoped that such an institution would strengthen the ability of the eurozone to help members facing financial difficulties despite good fiscal policy. He promised that the distribution of these funds would be under parliamentary control.
Germany and France are encouraging members of the eurozone to take more ambitious steps to complete the construction of their banking union. The two neighbors recently reached an agreement on several earlier proposals to create a budget specifically dedicated to the eurozone and to set up specialized institutions capable of acting as a last resort supranational lender in the event of a crisis. This project has so far received only a mixed reception with most European capitals.
In addition to the eurozone reform, Scholz said on Tuesday that he wants to improve taxation mechanisms for international companies through a purely international device.
The German minister has criticized several big digital companies for "particularly creative methods of tax evasion" and called for better government co-operation within the Organization for Economic Co-operation and Development (OECD), based in Paris.
German Chancellor Angela Merkel has already proposed to introduce a new tax on data from the digital economy. She pointed out that current discussions in the EU on how to tax big companies like Google and Amazon just highlighted the urgency of the problems that affect the current regulation of digital commerce. The real question in these discussions is whether traditional tax models for large corporations are still relevant, or whether decision makers should instead switch to direct taxation of revenues to equalize the terrain between digital and non-digital businesses. . F
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