The European Commission has postponed until October a European Union proposal to introduce a tax on digital companies to help fund a recovery plan aiming at stimulating the continent’s economy in the wake of the Covid-19 pandemic.

A spokesperson for the commission said it is focusing attention on resolving open issues related to the general agreement within the G20 of the institution of a minimum global tax for multinationals. “For this reason, we have decided to put on hold our work on a proposal for a digital levy.”

The U.S. has been putting pressure on the EU to drop the digital tax, which it sees as redundant in the light of the proposed reform of the international tax system.