A coordinated statement from EU finance ministers is being advanced as a path to move forward on a minimum corporate tax rate, despite Hungary’s veto. The proposal aims to align with OECD and G-20 efforts and seeks broader cooperation among member states without requiring a unanimous decision from all Twenty-Seven. This signal was delivered by the vice president on Friday, positioning a minimum effective rate of 15% for business profits as a reference point to unify tax policy across the bloc.
In remarks aimed at shaping a common momentum, the official urged support for a joint declaration that could mobilize decisive action today with other members, emphasizing enhanced cooperation. The message highlighted that any instrument available could be valuable to prevent stalemate, given the unanimity rule in the financial arena. The dialogue follows informal guidance circulating among ministers in Prague, underscoring a shared objective to press forward despite hurdles.
The vice president did not disclose the exact number of countries on board or the precise content of the declaration. Hungary continues to block the proposal intended to implement last year’s agreed framework within the EU. The OECD target of a 15% minimum tax on corporate profits from multinational companies generating more than 750 million euros annually has sparked discussion about alternative pathways. One viable option is to proceed through enhanced cooperation, a mechanism that allows initiatives to advance with a subset of partners—often at least nine member states—and which has been used in other policy domains when full consensus is elusive.
accelerating the effort
Estimates suggest that a 15% minimum could raise substantial revenue, potentially amounting to around 150 billion euros in incremental annual global tax intake. The vice president argued that faster progress is essential to establish coherent rules within the EU and to secure a minimum levy on large corporations. Such a measure is seen as a means to address the cost pressures from war, high energy prices, and broader inflation, while ensuring the tax system remains fair and effective across the bloc.
Looking back, the EU set out a precautionary objective in 2023, with a formal aim for June that faced early concerns from Poland regarding offers and terms. The file encountered a last-minute veto from Hungary, with the bloc later signaling that it would revisit the proposal after adjustments had been considered. This sequence illustrates the tensions around consensus-building in Europe’s tax policy landscape and the role of national vetoes in shaping collective outcomes.
support from Germany and France
Berlin and Paris have signaled readiness to implement a 15% minimum rate for large firms domestically if EU-wide ratification proves unattainable because of Hungary’s position. The German finance minister, Christian Lindner, emphasized a strong collective approach and indicated that Germany would advocate for a minimum-rate policy even in the absence of unanimous EU agreement, anticipating openness from other states to a similar path. In parallel, Bruno Le Maire of France described the situation as one of urgent economic strain, inflation, and elevated policy stakes. He noted ongoing exploration of multiple options with partners to ensure a 2023 implementation horizon, including the possibility of deeper collaboration while acknowledging alternative national routes if necessary.
European ministers responsible for tax policy are set to reconvene after a productive session to assess the next steps. A weekend gathering is foreseen, following a day of informal study and discussion focused on coordinating broader policy responses to soften the impact of rising interest rates and inflation on households and businesses. This effort aligns with the European Central Bank’s updates and the broader objective of harmonizing fiscal measures across member states for resilience in a challenging economic environment, while safeguarding economic growth and competitiveness.