Commissioner Wopke Hoekstra has told the European Parliament that the EU cannot renegotiate the Foreign Account Tax Compliance Act (FATCA) agreements, which are bilateral pacts between each member state and the United States, and that the question of their compatibility with EU data protection law is now before the Court of Justice of the European Union (CJEU). The answer, given on behalf of the Commission, pushes back on MEP François-Xavier Bellamy's concerns about extraterritoriality and lack of reciprocity, while deferring to the judiciary on the core legal question.
Bellamy (PPE) had asked whether FATCA's application complies with the General Data Protection Regulation (GDPR), whether the issue is part of broader EU-US trade discussions, and what legal options the EU has to ensure balanced application. The Commission's response, dated 24 April 2026, is notably limited in scope: it confirms that the Brussels Market Court referred the matter to the CJEU in November 2025 (case C-804/25), and that the EU is not a party to the agreements, so it cannot negotiate amendments.
On the trade dimension, Hoekstra points to the EU-US Joint Statement of 21 August 2025, which outlines a framework for reciprocal, fair and balanced trade, but notes that tax matters are not covered by that cooperation. This effectively rules out any immediate bilateral channel to address Bellamy's concerns about extraterritorial instruments.
The answer contains no concrete proposals, deadlines, or commitments to further action. It is a procedural and jurisdictional clarification: the Commission is waiting for the CJEU ruling and considers itself without a mandate to intervene. The policy orientation is one of restraint and deference to member state sovereignty and judicial process.
Expected institutional follow-up is limited to the CJEU's preliminary ruling, which could take 12-18 months. In the meantime, the Commission signals no intention to open discussions with the US on FATCA, nor to propose EU-level measures. The answer will likely disappoint MEPs seeking a more assertive EU stance on data sovereignty and reciprocity, but it reflects the legal reality that FATCA was signed bilaterally before the EU's data protection framework was strengthened.