Fiscal Coordination vs. Fiscal Competition among Corporations in EU

While tax harmonization in Europe can be difficult, fiscal coordination is as necessary as it is desirable. Tax competition, however, is the result of international mobility of tax bases, such as companies and financial assets. This mobility was not driven only by technological innovations in transport and telecommunications sectors, but especially the political decisions of liberalization and deregulation. This article addresses the issue of eliminating tax competition through tax base, by adopting CCCTB system, analyzing the benefits of tax coordination at European level. Fiscal Competition, in these conditions, would occur only at the tax rates that are so diverse (as it shows bellow) in the 27 EU Member States.