Europe's top tax official has ruled out an EU-wide digital services tax until global solutions are exhausted, despite France pushing for action. European Commissioner Wopke Hoekstra told the Financial Times the EU should wait until "all possibilities" at a global level are explored. France argues such a levy could raise substantial revenue for the bloc's future budget and reduce the burden on European taxpayers, with backing from the European parliament.

However, introducing an EU-wide policy risks further economic friction with the US, which has already launched Section 301 investigations into France, Italy, Spain, and Austria over their national digital services levies. The US-EU relationship faces additional strain after Ursula von der Leyen supported Canadian Prime Minister Mark Carney's proposal for Canada to become an EU associate member, prompting threats of tariffs from US President Donald Trump. Paris contends an EU-wide tax would shield individual countries from bilateral retaliation.

The Commission's research estimates a digital tax could generate about €5bn annually, though Hoekstra emphasized that a global approach remains the preferred solution. G7 finance ministers have tasked the OECD with reporting on progress by year-end, but breakthrough hopes remain low due to US opposition.