The European Parliament on 9 July 2026 debated the feasibility of a 28th tax regime to boost EU competitiveness, focusing on the Commission's EU Inc proposal. Rapporteur Ľudovít Ódór (Renew) argued the current proposal is insufficient, advocating a modular approach including a single consolidated corporate tax base, centralized VAT, and measures to eliminate double taxation. Commissioner Dubravka Šuica defended the proposal as balanced, highlighting digital-by-default procedures and tax deferral for employee stock options.
EPP's Luděk Niedermayer supported the report, calling for CCCTB and reduced double taxation, while S&D's Bruno Gonçalves stressed social protections and avoiding tax dumping. Patriots for Europe (PfE) Enikő Győri strongly opposed, arguing fiscal policy is a member state competence and the proposal erodes sovereignty. ECR's Giovanni Crosetto backed simplification but rejected qualified majority voting. Renew's Gilles Boyer welcomed the step but urged further harmonization. Greens-EFA's Kira Marie Peter-Hansen insisted on safeguards against tax avoidance. The Left's Jussi Saramo supported unification of technical systems but opposed tax cuts.
The debate exposed a clear cleavage between those urging deeper integration—Ódór, Niedermayer, Boyer, and several EPP, Renew, and S&D MEPs—and those warning against federal overreach, led by PfE and some ECR members. The former see a 28th regime as a tool to reduce compliance costs for startups and scale-ups, potentially boosting cross-border investment and simplifying tax obligations for SMEs. The latter view it as an encroachment on national sovereignty, arguing that member states should retain control over corporate tax rates and bases to compete on fiscal policy. The report is expected to be voted on in plenary.