European Central Bank: US tax law could erode Europe's tax base

Economists at the European Central Bank said the US corporate tax cut should lift the world's largest economy in the short term - but could erode the tax base in European countries by intensifying global competition for lower rates.

The cut in business taxes will provide a "significant fiscal stimulus" to growth in the US and would be "positive in the short term", an article set to appear in the ECB's regular economic bulletin said.