The article discusses how different tax laws in Europe affect multinational companies' financial decisions. It looks at three scenarios: current tax laws in the EU, a proposed common tax base, and a new tax model in Sweden. The findings show that current laws lead to low corporate tax rates and lenient debt deductions. The proposed common tax base could reduce tax competition, increase investments, and boost tax revenues in the EU. The new Swedish tax model could decrease the effective tax rate and broaden the tax base in Sweden.