Poland, Hungary and Estonia are among some EU nations wary of Europe undermining its negotiation position with the US.
French Finance Minister Bruno Le Maire’s demand that the European Union swiftly adopt new rules for a global minimum tax met with renewed scepticism from some member states at a meeting in Brussels.
“Some states still have concerns because their economic models are based on a very low level of tax, but they’ve accepted the OECD agreement,” Le Maire said as he arrived for the meeting to discuss the issues. “You can’t accept the OECD agreement and then say it doesn’t stand up when it’s transcribed into a European directive in exactly the same terms.”
France and the European Commission say the two pillars require separate legal instruments and the technical preparations at the OECD are running to different timetables. During years of transatlantic disagreement, most European countries -- led by France -- had prioritised the question of digital taxation, while the US pushed for a global minimum rate. Hungary’s finance minister, Mihaly Varga, said Europe risks undermining its negotiating position if it moves too fast on delivering the American priority.