After the Pillars: A Call for a European Corporate Tax 2.0

In the summer of 2025, under American political pressure, the G7 agreed on an exemption for American business from the global 15% minimum tax (Pillar Two). European companies will remain subject to the global minimum tax for the time being, it seems. Other major powers such as China and India, so far, are remaining silent. The G7 agreement represents a sensitive defeat for the European ideals of fiscal multilateralism. The Chancellor of Germany has called a suspension of Pillar Two in Europe. The German Finance Minister stated that the Berlin government remains committed to the global minimum tax. What next? This is a call for a competitive European business tax: a European corporate tax 2.0.