A planned digital tax targeting US internet giants is facing cautious assessment within Germany’s ruling coalition, according to prominent figures. Jens Spahn, parliamentary group leader for the Christian Democratic Union (CDU), has tempered expectations surrounding the proposed levy, signaling a complex interplay of economic and political considerations.
The concept of a digital tax, recently announced by Minister of State for Culture and the Arts Wolfram Weimer, aims to require internet companies to contribute up to ten percent of their advertising revenue. While acknowledging the disproportionately low tax contributions of companies like Amazon, Spahn emphasized that the implementation of such a tax remains an open question.
He stressed the importance of ongoing negotiations with the United States, cautioning against an escalating cycle that would ultimately be detrimental to Europe. Spahn indicated that any decision would be heavily influenced by the outcome of these discussions.
Beyond the digital tax, Spahn also advocated for increased flexibility and compromise during ongoing customs negotiations with the US. He noted the importance of securing tangible results for the Trump administration and suggested a willingness to make concessions, even if those concessions involved accepting asymmetrical agreements, citing potential scenarios involving tariffs on US automobiles.
Critiquing the current negotiating approach employed by European officials, Spahn suggested a shift towards a more streamlined and results-oriented strategy, contrasting the typical lengthy, detail-oriented documentation with the US preference for concise, two-page agreements contingent on investments. He implied a need for the EU to adapt its working methods to achieve desired outcomes.
