Hollande is the first EU leader to definitively say he will oppose TTIP, which is already facing problems and rising opposition amid continuing disagreements between Brussels and Washington. Hollande hit out after the US Securities and Exchange Commission fined the Frankfurt-based Deutsche Bank US$9.5 million fine for failings in its equity research department.
Hollande told French magazine l'Obs:
"That is why I want Europe to have the same powers to punish US companies. When the Commission takes action against Google or other digital giants who do not pay taxes they should pay in Europe, America is offended. That is why I said that the Transatlantic Trade and Investment Partnership (TTIP) cannot be agreed because of the enduring imbalances in relationships and reciprocity."
Washington v Brussels
Washington hit out after the European Commission ruled that Ireland granted undue tax benefits of up to US$14.5 billion to Apple, which it said was illegal under EU state aid rules. Ahead of the Apple ruling, the US Treasury criticized the European Commission's tax probe into Apple, claiming that it should not be able to collect back-taxes on the companies in Europe.
"[The] Commission is seeking to recover amounts related to tax years prior to the announcement of this new approach-in effect seeking retroactive recoveries. Because the Commission's approach departs from prior practice, it should not be applied retroactively," the US Treasury report said.
The European Commission has already ruled that Starbucks has benefited from tax arrangements in the Netherlands that constitute state aid, a decision which is being appealed. The same is true of Fiat Finance and Trade in Luxembourg. Although the Commission has not issued a final ruling, its preliminary views is that special tax arrangements in Luxembourg constitute state aid to Amazon.
So, arrived in EP Brussels this morning to see anti #TTIP #CETA flash mob in full swing. Brightened up my day! pic.twitter.com/Tr6jH3ZgL0
— Matt Carthy MEP (@mattcarthy) October 13, 2016
The spat over fines between Washington and Brussels puts the whole EU-US TTIP deal in doubt as any free-trade agreement must come with common agreement over the fiscal rules. If both the EU and the US are imposing fines on each other's country's companies, there is little hope of free trade.
