Debate contributions by Fabio DE MASI

Mr President, ladies and gentlemen! After the Second World War, even the German Christian Democracy warned in its Ahlen program against the concentration of economic power in the hands of fewer people. But for decades, wealth concentration in Europe has been on the rise again, while the middle class is under pressure. During the coronavirus crisis, the number of billionaires continued to rise. Few 1,000 billionaires on our planet control our technological infrastructure. With the development of artificial intelligence, we continue to deliver our societies to this economic power of an oligarchy. It's just untrue: While inequality increased, while profits and wealth as a share of national income continued to rise, the propensity to invest declined because the mass of the population lacked purchasing power. Brazil's initiative with the G20 states for a minimum tax on 2,500 billionaires worldwide therefore points the way. In addition to Brazil, Spain and France also support the initiative, but the German government and the US government torpedo it. It is therefore time for this House to act and put itself at the service of the 99 percent of the population.

Mr President, ladies and gentlemen! Ten years ago, the Luxembourg leaks revealed how large international corporations often pay less than 1% tax on their profits in the EU, while our middle class and our employees are being scooped up. The state aid procedure and litigation with Apple and Ireland also took almost a decade. In the case of Amazon and Starbucks, the EU Commission has lost proceedings because state aid law requires extensive proof that other companies are discriminated against, for example because transfer prices are incorrectly set with artificial loans and royalties. The international minimum tax also has a number of loopholes. However, Apple sells its iPhone mainly in large markets such as Germany, France, Italy or Spain, not in Ireland or Luxembourg. Through the international reporting obligation, we know how high the sales and profits of these companies are in each country. That is why we finally need a coalition of willing states, which finally takes the failure of the EU in the fight against corporate tax dumping into its hands and does something about it and finally sets a sign with punitive taxes or withholding taxes against artificial financial flows in tax havens. Let's get the money back and protect our middle class!

Madam President, ladies and gentlemen! For the first time under Brazilian leadership, the G20 countries have decided to make the ultra-rich more accountable. Only 2,500 billionaires worldwide, using tech companies for example, to determine how 8 billion people work, read the news or pay with which technologies. This economic power is a threat to democracy, and sooner or later it culminates in the oligarchy. Inequality has increased in the context of the coronavirus crisis; our infrastructure is lost – in Germany, in my home country, a bridge has recently collapsed. Inequality – yes, it also contributes to migratory pressures worldwide. I therefore welcome the fact that Gabriel Zucman, a renowned economist, is calling for an internationally coordinated minimum tax for billionaires of 2% of wealth that preserves national tax sovereignty. France, Spain and South Africa support this proposal, but the German government and the US government sabotage this plan. This Parliament should represent the interest of 800 million people in the EU and not of 2 500 billionaires worldwide, and support this plan.