Corporate Tax Consolidation and Enhanced Cooperation in the European Union

Hendrik Vrijburg, A van der Horst, LJH (Leon) Bettendorf, RA (Ruud) de Mooij

Research output: Contribution to journalArticleAcademic

7 Citations (Scopus)


We assess the economic impact of introducing consolidation with formula apportionment in the European Union and consider alternative enhanced cooperation agreements. We find that the consolidation is likely to yield a small aggregate welfare gain in Europe. However, not all countries benefit. A coalition of winning countries reduces the welfare gain and may induce a process of adverse selection which destroys the possibility of cooperation. We find that a coalition of similar countries (in terms of the size of their multinational sector) is more feasible in achieving agreement and is actually preferred by those countries over a Europe-wide reform.
Original languageEnglish
Pages (from-to)453-479
Number of pages27
JournalFiscal Studies (London)
Issue number4
Publication statusPublished - 2010

Research programs

  • EUR ESE 01


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