Budapest is opposed to the 15 % levy on profits, which must come into force on December 31, 2023. The EU hoped to be the first to ratify this project adopted in 2021 by 140 countries under the aegis of the OECD.
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“It is part of the charms of this negotiation. There are advances, there are setbacks,” said Bruno Le Maire, on Friday, June 17, after the Council of European Finance Ministers , during which Hungary opposed the adoption, by the European Union (EU), of a minimum tax of 15 % on the profits of large multinationals, from December 31, 2023.
The French Minister, who hoped that the EU finally gives body to the project adopted last year by 140 countries under the aegis of the Organization for Economic Cooperation and Development (OECD), after almost five years of Debate, is actually very upset. France, engine on the subject, occupies the rotating presidency of the EU council until 1 er July. She would have liked to be able to hang on to her hunting board a world tax reform never attempted, capable of putting a stop at tax havens at zero rate and tax dumping strategies. The decision would also have been particularly welcome, two days, in France, of the second round of the legislative elections. Hungary had nevertheless given its approval to the reform, at the end of 2021, at the OECD level, with the rest of the international community.
“We must reach the days of a final adoption of this project of directive,” said Bruno Le Maire nevertheless, revealing the final political negotiations on the wire to rally Budapest and adopt the text to the ‘unanimity of the 27 member countries, as the rule wants. The countdown is at least tight, because the 1 er July, France will give in the presidency of the European Union to the Czech Republic, whose agenda may be different.
blackmail of Hungary
The subject, in fact, is much more diplomatic than fiscal and refers to the complicated relations that Hungary of Viktor Orban maintains with the European Union. Thus, officially, the veto of Budapest is based on the context of strong inflation and its fear of seeing the establishment of such a minimum world tax cause “serious damage to European economies”. However in Brussels, the reversal of Budapest is otherwise interpreted, in full discussions on access to the European recovery plan of 750 billion euros, which the European Commission intends to condition the strengthening of the country’s anti -corruption policy.
Hungary is not the only one to seize this political momentum, to push its pawns. So, until very recently, in early June, Poland also threatened to have the adoption of the tax transposition text to the adoption. Warsaw demanded for its part to link this minimum world tax to the second part of the reform designed and piloted by the OECD, yet still in the process of technical finalization, and relating to a more fair distribution of multinational taxes, between their countries of Origin (those of their headquarters) and those where they really make their profits (the countries where their markets and their customers are found).
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