The global minimum tax is extremely complex and creates significant competitive disadvantages for companies in Europe, as key industrialized nations outside Europe are not participating. A temporary Europe-wide suspension of the minimum tax is necessary so that structural simplifications can be developed as viable solutions that take global conditions into account.

Current tax policy developments in the United States require a resolute and coordinated response from European policymakers, sending a clear signal. Countermeasures targeting companies operating in the U.S. from jurisdictions that have implemented parts of the global minimum tax agreement are becoming increasingly likely. This development poses a serious threat of competitive disadvantages for German and European companies operating globally. It is high time to protect Europe’s economic interests and preserve its international competitiveness.

Donald Trump has ruled out U.S. participation in the global minimum tax and plans to take countermeasures against companies operating in the U.S. that are from countries implementing individual parts of the global agreement on a minimum tax—including the EU. German companies that are successful globally face the threat of massive competitive disadvantages. It is high time to protect the interests of the German and European economies and to act in the interest of competitiveness.