"We need to address the digital taxation, and we need to do it preferably internationally because especially the digital economy is quite globalised," Dombrovskis, who also has temporary responsibility for trade, said at Austria's Alpbach economic forum, which he joined online.

"With more digital economy it becomes also more of a challenge for our tax revenues to finance our infrastructure and social programmes," he said.

(Reporting by Kirsti Knolle; editing by Thomas Seythal)