From multilateralism to strategic realism; a proposal for a Corporate Tax 2.0

The blog piece argues that the G7’s 2025 decision to exempt U.S. multinationals from the OECD’s 15% global minimum tax (Pillar Two) marks a shift from cooperative multilateralism to geopolitical self-interest, leaving EU firms at a competitive disadvantage. With Pillar One abandoned and Pillar Two under pressure, global tax coordination is eroding as countries prioritize sovereignty and competition. The piece proposes a Corporate Tax 2.0 model as a strategic EU response: treat multinational groups as single taxpayers, apply an Allowance for Corporate Equity to tax economic profit, allocate tax base by destination (sales), and let member states set rates within limits. This model would simplify rules, neutralize BEPS risks, and create an investment-friendly, geopolitically resilient tax system, positioning the EU as a first mover in shaping the next global fiscal order