The EU Court’s Apple judgement, confirming that Ireland granted €13 billion of unlawful state aid to the American multinational, was great news for all Europeans and tax justice. This historic ruling must trigger bold reform of company tax that would eradicate sweetheart tax deals for multinationals at the expense of taxpayers, urge the Socialists and Democrats ahead of today’s debate on this topic in the European Parliament.

Jonás Fernández, S&D spokesperson on economic and monetary affairs, said:

“The Apple ruling is a great victory for tax justice. The judgement confirms that secretive sweetheart deals for multinationals at the expense of workers and small companies are wrong and unlawful.

“Now we have to seize the moment. We encourage the next Commission to continue the clamp down on state aid abuses involving selective tax breaks to companies.”

Bruno Gonçalves, S&D spokesperson on taxation, added:

“Over the past years, progressives have secured many legislative breakthroughs that bolstered tax justice, for example, the global deal on minimum effective tax for multinationals and new rules to ensure better cooperation among tax authorities. These are powerful instruments that the EU has fully incorporated.

“However, exemptions embedded in the global deal and remaining differences in member states' tax laws may still be exploited for tax avoidance. This is why tax justice remains our priority. We must tackle the root causes of tax evasion and avoidance by multinationals, harmonise further corporate tax rules in the EU and close remaining loopholes.

“In this context, it is key to adopt legislative reforms to fight tax avoidance when doing business in Europe. It is a package of three directives on taxation, called Business in Europe: Framework for Income Taxation, known by the acronym BEFIT.

“In this mandate, we also pledge to focus on finding a better balance in the tax burden that is currently mostly carried by workers and the middle class. Capital is often taxed at much lower rates than salaries, and the wealthiest in our society do not pay their fair share. This cannot continue.

“The EU and governments need stable revenue to finance quality public services, and deliver an ambitious digital and climate transition that leaves no one behind.”