
The Evolving EU Tax Mix: Insights from Dr. Irma Mosquera Valderrama
As Europe grapples with economic challenges and shifts in global taxation, expert voices like Dr. Irma Mosquera Valderrama emerge as essential guides to understanding the complexities of the European Union's tax policies. During a recent interview with Dr. Valderrama, a professor at Leiden Law School and an expert on EU tax governance, she offered her insights into the current state and future directions of the EU tax mix.
Understanding the EU Tax Mix
Dr. Valderrama characterizes the EU tax mix as confusing and seemingly lacking direction. She notes that since the financial crisis of 2008, the EU has shifted its focus from fostering business-friendly environments to a more complex framework that addresses international concerns of tax fairness and compliance. The introduction of guidelines aimed at addressing base erosion and profit shifting (BEPS) highlights a critical struggle within the EU to maintain competitiveness while promoting fair taxation across member states.
A Call for Clarity and Cohesion
One of the pressing concerns raised by Dr. Valderrama is the lack of a coherent strategy within the EU regarding tax policies. While initiatives abound, such as the Pillar Two Directive tackling tax competition and the UNSHELL Directive aimed at transparency, they often overlap and lead to uncertainty among EU nations and their citizens. As she emphasizes, the need for a collective vision becomes paramount—one that reconciles the diverse interests of states while promoting stability and legitimacy.
The Importance of Public Trust
The perceived legitimacy of the EU's tax system directly influences public trust. Dr. Valderrama argues that without a clear and consistent tax policy, the EU risks alienating its citizens. By developing a transparent and fair framework, the EU can enhance its credibility not just among its members but also on the global stage, particularly as it faces competition from non-EU countries.
Looking Towards the Future
As the conversation on tax policy continues to evolve, Dr. Valderrama's insights serve as a crucial reminder of the complexity involved in EU governance. While challenges abound, her call for clarity in the EU tax mix invites policymakers to consider the long-term implications of their decisions and the importance of building a tax framework that fosters both fairness and competitiveness.
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