The subject was not on the agenda of the meeting of European finance ministers, who met in Prague on Friday 9 and Saturday 10 September, but he was invited to the discussion table between the treasurers of the old continent. The French Bruno Le Maire and four of his counterparts – the German Christian Lindner, the Spaniard Nadia Calvino, the Italian Daniele Franco and the Dutch Sigrid Kaag – took advantage of this forum to relaunch the project to introduce a minimum tax of 15% on the profits of large multinationals, now blocked by Hungary.
” We’re ready to [le] implement in 2023 and [à utiliser] all legal means [pour y parvenir] », said the five ministers in a joint text, which they published in the middle of the day on Friday. The message is clear: the Europeans will find a way forward even if Budapest does not lift its veto. It had however signed the agreement of the Organization for Economic Cooperation and Development (OECD) under the aegis of which 140 countries have committed in 2021 to adopt a minimum tax.
Over the last few weeks, the Commission has consulted the capitals to find out which ones would be in favor of a “enhanced cooperation” which would allow them to implement this commitment without the need for the unanimity of the Twenty-Seven, as is normally the case in tax matters. This procedure allows the Community executive to present a proposal which must be adopted by the Member States by qualified majority, and which can come into being when at least nine of them decide to implement it.
“Tax justice must be an EU priority”
On June 17, apart from Hungary, the twenty-six other Europeans voted in favor of the adoption by the European Union (EU) of a minimum tax of 15% on the largest groups. But some of them, such as Ireland, Malta, Luxembourg or Estonia had previously expressed reluctance. “They ended up following suit. But there is nothing to say that they would participate in an enhanced cooperation”, explains a diplomat. Especially since this mechanism is not appreciated by small countries, who see it as a way of circumventing their right of veto.
European countries wishing to move forward can also do so alone, by passing a text before their national parliament, insofar as they have signed the OECD agreement. “We can have more member states follow in this way”, continues this diplomat. Berlin is already working on a bill. “Tax justice must be an EU priority. We will put in place the minimum corporate tax from 2023, either via the European route or via the national route”says Bruno Le Maire.
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