Hungary prevents the EU from accepting the minimum tax

“It simply came to our notice then.Commenting, logonically, Bruno Le Myre, on Friday, June 17, at the Council of European Ministers’ decision, opposed Hungary’s adoption of the European Union (EU) minimum tax of 15% on profits as of December 31, 2023.

After nearly five years of debate, the French minister was really upset, believing that the EU would finally give its substance to the plan adopted last year by 140 countries under the Organization for Economic Co-operation and Development (OECD). . France, which is a driving force in this regard, holds the rotating leadership of the EU Council to 1There is July. She would have loved to have global tax reform hung on her list like never before, with the potential to put an end to zero-rate tax havens and tax evasion tactics. The decision comes two days before the second round of assembly elections in France. However, at the end of 2021, at the OECD level, Hungary agreed with the rest of the international community to reform.

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“We must reach the final approval of this draft order in the coming days.”However, Bruno Le Myre announced that he would mobilize Budapest and, as a rule, recommend final political talks on the wire to get the text unanimously adopted by the 27 member states. At least say the countdown is tight because 1There is In July, France will hand over the presidency of the European Union to the Czech Republic, whose agenda may be different.

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Hungarian blackmail

The material, in fact, refers more to diplomacy and Victor Orban’s Hungary’s more complex relations with the EU than finances. So, officially, Budapest’s veto is based on the context of high inflation and its fears of the introduction of such a global minimum tax. “Severe damage to European economies”. However, in Brussels, amid the debate over access to the 50 750 billion European recovery plan, the turnaround in Budapest is being interpreted differently, with the European Commission seeking to impose a condition to strengthen the country’s anti-corruption policy.

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Hungary is not only capturing this political momentum, it is pushing its soldiers. Thus, until very recently, in early June, Poland threatened to derail the adoption of tax change text. Warsaw, for its part, demanded that this global minimum tax be incorporated into the second part of the pioneering and pioneering reform by the OECD, which is still in the final stages of technology and related to the fair distribution of taxes by multinational corporations. Countries of origin (their headquarters) and the countries in which they are actually profitable (the countries where their markets and customers are located).

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