European Union

EU leaders wagged fingers at Theresa May for her inability to deliver on key issues, such as the Irish border, due to her own political weakness.

This week, England played Belgium, oh what a game! FYR Macedonia changes its name, and Stop Soros law is Hungary’s shame.

Italian and German demands on migration appear secured for the time being but the concepts agreed at the EU summit to create centres to check migrants within and outside the EU remain vague.

Sanctions relief and increased economic activity with European companies will not change Iran's pursuit of its own interests and curb its nuclear ambition, writes Giulio Terzi di Sant’Agata.

Morocco has made significant progress on a number of human rights issues since the revision of its Constitution in 2011 and the creation of the National Council of Human Rights (CNDH) in 2012, but the EU must continue using its soft power to help Rabat take up other sensitive issues, writes Willy Fautré.

As Theresa May returns from yet another European Council where she had nothing to say in concrete terms to her fellow 27 heads of government on Brexit, she could actually be copying the tactics of one of the most famous Roman leaders, writes Denis MacShane.

The 67th Annual Congress of the Association of European Manufacturers of Sporting Ammunition (AFEMS) took place in Portoroz, Slovenia, during the first week of June.

One EU-funded project in Poland all started with a girl allergic to food additives and ended up with an innovative start-up, which connects 150 farmers with 100,000 people who want to eat healthy food straight from the producers. EURACTIV Poland reports.

The spokesperson of President Donald Tusk issued a statement.

President Donald Tusk congratulated Prime Minister Zoran Zaev of the former Yugoslav Republic of Macedonia on the agreement with Greece on the name issue and the opening of accession talks in June 2019. He also said the European Council would focus on the EU's external border.

The idea of making countries pay if they are not willing to take in refugees – already debated and taboo – now seems to be the only way to solve the tricky issue of migrants’ allocation.

Countries in north African coast must first set up humane reception centres before the UN and the International Organisation for Migration agree to any migrant camps, such as those being discussed by EU leaders.

The EU leaders agreed “in substance” on Thursday (28 June) on a set of proposals to improve the World Trade Organisation, which should pave the way for finding common ground with US President Donald Trump and de-escalating the ongoing trade dispute. But Italy blocked their formal adoption until the migration issue was fully addressed.

Pedro Sánchez and Giuseppe Conte, the freshly appointed leaders from southern Europe, are two new kids on the bloc. But they could hardly be more different: Sánchez is a breath of fresh air in Spanish and European politics while Conte is a new headache for Brussels. Both made their first appearance at the European Council on Thursday (28 June).

Italy's new prime minister Giuseppe Conte blocked all agreements during the meeting of EU leaders on Thursday until fellow leaders include his demands on migration in the final conclusions. Because of the unusual move, a planned press conference by European Commission president Jean-Claude Juncker and European Council president Donald Tusk has been postponed. This holds up conclusions already reached on security and defence, enlargement and the EU's budget.

Two million people in Macedonia will be hoping to become EU citizens in 2025 as leaders give nod to start talks.

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EU heads of state or government meet on 29 June 2018 in Brussels to review, in an EU 27 format, the state of play of Brexit negotiations and adopt conclusions on progress made.  The Euro summit, also in an inclusive format (EU27), discusses the reform of the economic and monetary union.

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Farmers being in direct contact with the consumers and setting their prices independently, without having to submit to the wholesale market dictate - sounds like going back to the roots of agricultural markets. Behind this, however, is a model with a genuinely promising future. EURACTIV.de reports.

Written by Marcin Szczepański (1st edition),

© wladimir1804 / Fotolia

Despite achieving unprecedented growth and profit rates, the digital economy seems to be relatively undertaxed when compared to more traditional ‘bricks and mortar’ companies. The current rules are based on the physical presence of taxpayers and assets, and there is a general understanding that they are not suited to taxing a digital economy characterised by reliance on intangible assets and ubiquitous services whose location is often hard to determine. International bodies are currently working on how to adapt tax rules to the digital reality.

The European Commission adopted a proposal in March 2018. It would allow taxation on the basis of digital rather than physical presence linked with the EU, for digital activities generating turnover of over €7 million, and with more than 100 000 users or 3 000 business to business contracts annually.

The proposal has met with mixed reactions from stakeholders. Although there is growing recognition that digital companies should pay similar tax rates to traditional companies, some consider the initiative to be premature given the ongoing search for a compromise at the level of the Organisation for Economic Co-operation and Development (OECD), which is thought of as the permanent solution. Furthermore, the Council seems to be divided on the issue, whereas it needs to reach unanimity in order for the law to be adopted.

Versions

• June 2018: ‘Corporate taxation of a significant digital presence‘ (1st edition)

Proposal for a Council directive laying down rules relating to the corporate taxation of a significant digital presence Committee responsible: Economic and Monetary Affairs (ECON) COM(2018) 147
21.3.2018 Rapporteur: Dariusz Rosati (EPP, Poland) 2018/0072(CNS ) Shadow rapporteurs:

  Paul Tang (S&D, the Netherlands)
Ashley Fox (ECR, UK)
Petr Ježek (ALDE, Czech Republic)
Martin Schirdewan (GUE/NGL, Germany)
Barbara Kappel (ENF, Austria) Consultation procedure – Parliament adopts a non-binding opinion only Next steps expected: Publication of draft report

Listen to podcast ‘Corporate taxation of a significant digital presence‘

Effective average tax rate in the EU for international enterprises

As the EU summit opened in Brussels, positions were still apparently irreconcilable on how to deal with people trying to cross the Mediterranean sea, with the Italy's PM Giuseppe Conte threatening to veto conclusions.