Press releases

Pillar 1 of the latest OECD tax reform will affect only 78 of the world’s 500 largest companies. This is a key finding of the most recent EconPol Policy Brief. The authors estimate the total allocation at USD 87 billion. Around 45 percent of this total (USD 39 billion) will be generated by technology companies. The largest US tech giants – Apple, Microsoft, Alphabet, Intel, and Facebook – alone will generate around USD 28 billion.

The EMU should create monetary and fiscal  mechanisms to safeguard its irreversibility in exceptional situations. This is one of the lessons learned from past crises, as shown in a recent study by the research network EconPol. “The financial crisis and the coronavirus crisis have shown that either monetary policy or fiscal policy, or both, should be aimed at keeping the monetary union together,” the authors argue. Alternatively, member states should include an explicit exit clause in the treaties.

Upswing phases are strongly linked to a rise in CO2 emissions. The effect is strongest in countries that depend on energy-intensive sectors. This is a key finding of the latest EconPol working paper. “We should adjust European environmental policy over the economic cycle:  A good idea is to apply higher carbon taxes in ‘good times.’ We need to consider (procyclical) green taxation if we want to reach the climate goals as defined under the EU’s Covid-19 Recovery Plan,” says Antonia Díaz, one of the authors of the study.

Information on the Covid-19 pandemic triggers altruistic behavior and willingness to discuss with citizens of their own country, other EU countries, and non-EU citizens. Information on the importance of shared European values also increases altruism and reciprocity, but only toward compatriots and fellow Europeans. These are the findings of a large-scale survey experiment conducted by the EconPol Europe research network.

The OECD should consider simpler rules for allocating profits and taxing rights to countries where international companies have their markets. This is a proposal put forth in a study by EconPol, the European Network for Economic and Fiscal Policy Research. The OECD has suggested that taxing rights of multinational companies should be allocated using a revenue-based formula.