The EU’s Economic and Financial Affairs Council (ECOFIN) met on 17 June to further discuss implementing a directive for a global minimum corporation tax in Europe, with no agreement reached.
The OECD released guidelines for Global Anti-base Erosion Tax (GloBE) in December 2021, and the European Commission published its initial proposal for a minimum tax two days later. In April 2022, Poland refused to support the proposed directive, stating lack of a legally binding mechanism linking the minimum tax to the main technology multinationals.
Poland lifted these reservations at the ECOFIN meeting, but Hungary withdrew its previous support, noting concerns as to the economic consequences of introducing GloBE at a time when the region is battling the war in Ukraine.
While these concerns were noted, ECOFIN remained optimistic agreement could be reached before 30 June , while the next ECOFIN meeting is scheduled for 12 July.
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