German Chancellor Olaf Scholz announced that the European Union is moving forward with a global minimum tax for large multinational companies. Speaking at a press conference following the EU summit in Brussels, Scholz framed the decision as a milestone in European policy and a major contribution to fairer taxation on a worldwide scale. The remark reflected a long-simmering ambition across Europe to ensure big corporations pay a baseline level of tax, regardless of where they book profits or structure their operations.
The chancellor underscored that this policy has been a personal priority for him for years. He recalled his time as finance minister, when he championed the agreement and navigated its path through international cooperation under the Organisation for Economic Cooperation and Development. The essence of the plan is straightforward: any multinational company with annual global sales of at least 750 million euros would be required to face a tax rate of no less than 15 percent. This threshold aligns with existing international efforts to curb tax avoidance and to level the playing field for businesses operating in Europe and beyond, ensuring that profits are taxed where value is created and economies benefit from corporate activity.
Scholz’s remarks place the EU’s tax agenda within a broader framework of fiscal justice and economic resilience. By embracing a minimum tax, European nations join a growing club of jurisdictions that seek to reduce the incentives for profit shifting and to secure stable tax revenues that can fund public services, infrastructure, and social programs. The policy also signals a readiness to coordinate with other major economies to maintain a cohesive approach to international taxation, while addressing concerns from smaller member states about the distribution of tax burdens across the union. In practical terms, the plan is designed to reduce competition on tax rates that can distort investment decisions and erode the tax base across the European Union and its trading partners.
In addition to tax reform, the report notes ongoing discussions around energy costs and the role of pricing mechanisms in stabilizing European energy markets. There has been attention on a proposed ceiling for gas prices as part of the EU’s strategy to shield consumers and businesses from volatile energy prices while preserving incentives for energy efficiency and diversification. The plan described by the Chancellor envisions a mechanism that balances affordability with the need to maintain a secure and reliable energy supply for all member states. EU officials are weighing the potential impacts on suppliers, consumers, and the broader European economy as they move toward a final decision on the ceiling, with a timeline that aims to deliver a fair framework for even the most energy-intensive sectors. The focus remains on transparency, consistency, and ensuring that any measure serves the broader goal of energy resilience and market stability across the union.