Opening statements by János BÓKA, Hungarian Minister for European Affairs and Stella KYRIAKIDES, European Commissioner for Health and Food Safety, on the historic CJEU ruling on the Apple state aid case and its consequences. MEPs discuss the European Court of Justice (ECJ) ruling that deemed Ireland’s tax arrangements with Apple as illegal state aid. The court's decision requires Ireland to recover €13 billion in taxes from Apple and overturns a previous General Court ruling that was favorable to Apple. This ruling is final and definitive. The Chair of Parliament’s tax subcommittee has described the ruling as "historic," highlighting its significance for European tax policy. This debate explores the broader implications of the ruling for EU state aid regulations and international tax practices. This transcription is a result of an authomatic process. Please check against delivery.

statement

Strasbourg

debate

plenary session

Taxation (T2)

EU - Ireland (T)

Court of Justice of the European Union

KYRIAKIDES, Stella (CY, EC)

The historic CJEU ruling on the Apple state aid case and its consequences: opening statements by János BÓKA, Hungarian Minister for European Affairs and Stella KYRIAKIDES, European Commissioner for Health and Food Safety

SOUNDBITE (English), J&aacute;nos B&Oacute;KA, Hungarian Minister for European Affairs, Dear president, honourable members, commissioner, thank you for inviting the council to intervene on this issue. I can be brief. The council took note of the ruling. As you know, the European Commission is in charge of assessing the compatibility of state aid with EU rules and this decision can be challenged before the Court of Justice of the European Union.

SOUNDBITE (English), J&aacute;nos B&Oacute;KA, Hungarian Minister for European Affairs, The Council has a general interest in guaranteeing that relevant EU legislation on state aid is effectively enforced as a key feature of the EU's efforts to enhance our competitiveness and protect the single market. Having said that, it is of course not for the council to comment on a ruling by the European Court of Justice. I thank you very much for your attention.

SOUNDBITE (English), Stella KYRIAKIDES, European Commissioner for Health and Food Safety, President, Honourable members, the appeal judgement of the European Court of Justice is good news for European citizens. For tax justice and the level playing field in our internal market. The Court of Justice confirms the decision from 2016 by the European Commission. Ireland unlawfully granted incompatible aid which Ireland now must recover and this judgement is final.

SOUNDBITE (English), Stella KYRIAKIDES, European Commissioner for Health and Food Safety, The judgement in the Apple case is also a win for the Commission. I would like to thank the European Parliament and specifically the subcommittees of Tax and Fisc, for following this issue closely and supporting the Commission's enforcement efforts throughout the last decade. A lot of work has been done during this mandate, which has decisively contributed to important changes by the different actors concerned.

SOUNDBITE (English), Stella KYRIAKIDES, European Commissioner for Health and Food Safety, The Commission's state aid cases have helped trigger or accelerate legislative reforms, some of which your subcommittees were involved with. The Commission publishes a yearly report on where we stand with taxation in Europe. We see that the combined effect of enforcement and legislative action has led to important changes, but not yet to the complete end to aggressive tax planning and tax avoidance.

SOUNDBITE (English), Stella KYRIAKIDES, European Commissioner for Health and Food Safety, Executive Vice President Vestager has been explicit on this when welcoming the Apple judgement last week. These practices continue to distort the internal market and competition between big multinational groups and smaller sized companies. So undeniably, there is more work needed to level the playing field in the internal market and achieve tax fairness. These efforts are important also because when certain member states resort to harmful tax competition, the consequences are generally borne by other member states.

SOUNDBITE (English), Stella KYRIAKIDES, European Commissioner for Health and Food Safety, However, state aid enforcement alone is not enough to fight harmful tax competition and aggressive tax planning. The Commission consider that full year should be made of the various instruments at its disposal to enforce union law. It is true that outside the spheres in which EU tax law has been harmonised, member states have a high degree of autonomy in designing their fiscal rules. However, the Apple judgement confirms that state aid enforcement can be used to ensure that member States adhere in practice to the rules that they themselves have decided.

SOUNDBITE (English), Stella KYRIAKIDES, European Commissioner for Health and Food Safety, There are also other important actors in the fight against aggressive tax planning and tax avoidance measures. Member States, the Council, the European Parliament all these actors should work together in the coming years to improve the level playing field. All the Commission's efforts in this field derive from one basic principle: that all companies with a big or small, with a digital or brick and mortar, must all pay their fair share of taxes. Otherwise the public purse and European citizens are deprived of much needed funds.

SOUNDBITE (English), Stella KYRIAKIDES, European Commissioner for Health and Food Safety, They are needed for our social security systems, our education systems, our public infrastructure, to name just a few. Our efforts in defending this principle need to continue at all levels. Be it national, European or international and by all actors. Be the Commission, the Council and the European Parliament. Thank you.