Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Brussels considers cutting Hungary out of global tax rate bill

Brussels considers cutting Hungary out of global tax rate bill

The plan would involve a so-called enhanced-cooperation deal to circumvent Budapest’s veto.

The European Commission is asking member governments whether they’d support a plan to cut Hungary out of the EU’s bid to introduce a global minimum corporate tax rate of 15 percent.

Four officials from EU national finance ministries told POLITICO the Commission officials have been putting calls into capitals to gauge their appetite for a so-called enhanced-cooperation deal that would nullify Budapest’s veto of the initiative.

Tax bills require unanimity to get through Brussels’ legislative machinery, giving any EU country of any size the power to block them. But enhanced cooperation would allow member countries that favor the measure to progress without having to reach unanimity — leaving Budapest out in the cold.

If there’s support against Hungary, the EU’s executive arm could unveil the enhanced-cooperation initiative by the time finance ministers meet in Luxembourg next month for their monthly Ecofin meeting, one of the officials said.

“Implementing the historic international agreement on minimum taxation remains a high priority for the European Commission,” a spokesman wrote in an email to POLITICO when asked about the phone calls. “We are in close contact with Member States with a view to delivering on that objective.”

Hungary’s sole veto against the tax rate is embarrassing for Brussels. EU institutions had hoped to be quick about implementing the global initiative and set the pace for over 130 countries that also backed the accord, including the United States, China, India and the United Kingdom.

The Organization for Economic Cooperation and Development orchestrated the initiative in a package of corporate tax reforms, designed to render tax havens useless and ensure global companies — and tech giants — pay their fair share of dues.

The two-pronged package is made up of the tax rate for multinationals and a measure that’ll ensure the world’s 100 biggest companies pay taxes on their operations and sales around the globe.

Leaders from G20 countries rubber-stamped the package in the fall of last year but the OECD is still putting the final touches on the global levy for the 100 biggest companies.


Hostage-taking


The Commission copy-pasted the tax rate into an EU bill in December and EU finance ministers almost agreed on the text in April were it not for Poland.

Treasury officials were quick to accuse Warsaw of holding the bill hostage over a rule-of-law dispute over which the Commission was withholding Poland's share of the EU’s €800 billion post-pandemic recovery fund.

The dispute with Warsaw was settled in June. But Hungary then followed suit at the 11th hour amid its own frustrations of not getting access to its recovery fund cash. The Czech finance minister visited his Hungarian counterpart in August to discuss the deadlock after taking on the administrative duties of the EU’s six-month presidency in Council — but left empty-handed.

Patience is wearing thin with Budapest, said treasury officials, who were tentatively supportive of the Commission’s plan — although nothing has been decided yet.

France and Germany have voiced support for the strategy in the past. There’s concern among smaller countries, however, that this strategy could embolden the Commission to keep using enhanced cooperation to circumvent them if they oppose tax bills in the future.

But the tax rate needs to happen to ensure that global momentum for the OECD accord continues, they add. If not, the fear is that the U.S. will fail to implement the deal, especially if Republicans win a majority of seats in Congress in the upcoming midterm elections.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
×