He pointed out that tax is often one of many carrots used by states to attract investment, with attributes such as good relations between employers and staff, high quality infrastructure, efficient state administration also attractive.
Last week finance minister Pierre Gramegna (DP) said he is “very pleased that this discussion is taking place.”
He also said: "we need more solidarity, we need to break the mould of many multinationals trying to reduce their taxation close to zero, and that’s been recognised by all observers: we must avoid a race to the bottom.”
Thelen noted that Luxembourg’s national tax rate is 25%, so higher than the median in the EU of 21%. This gives leeway to set a minimum, he said.