I think the problem here wasn't even the low tax rate, but the special arrangements they made with select companies. Because that allows them to offer Luxembou

I think the problem here wasn't even the low tax rate, but the special arrangements they made with select companies. Because that allows them to offer Luxembourg-style almost-zero tax rates to a few international giants without sacrificing their domestic tax base. Individual subsidies have been illegal under most circumstances for quite a while now, and giving them a 95% tax rebate is obviously almost identical in effect and morality (law to be determined). It's also a pretty classic case: Apple is going to have European headquarters somewhere, and any tax rebate they get is a loss of X in European tax revenue and a plus of the same magnitude for Apple's shareholders. It'd be stupid for the European countries not to cooperate (with the understanding of transfers to those countries whose competitiveness suffers)