Bruno Le Meyer, the finance minister in the government of Emanuel Macron, today sent a message to Hungary and Ireland raising two voices leading the opposition to the Biden administration’s move to create a 15% global minimum tax for multinational corporations.
“It is disappointing that some of the EU member states oppose some important agreement,” Le Meyer said in an interview with CNBC.
Last week, 130 state and autonomous jurisdictions agreed to impose a minimum 15% rate on large multinational corporations to prevent these companies from escaping to countries with more favorable tax conditions. Hungary and Ireland order revolt against this move.
Irish Finance Minister Pascal Donohue has already warned that Ireland will challenge the G7 decision and will “struggle” to maintain corporate monetary policy. Three weeks ago, Donohue spoke to Janet Yellen, the US Treasury Secretary and ambassador for the proposal. “Legitimate tax competition still plays a role, especially in the case of small economies,” the Irishman told the Biden administration.
“Smaller countries like ours need to be able to use monetary policy as a legitimate way to compete with other states’ geostrategic and nature-attractive attributes,” the governor argued.
Hungary’s Secretary of State for Taxation, Norbert Eiser, went so far as to classify the US proposal as a “violation of sovereignty.” In his opinion, “this decision will make life difficult for local companies.”
Hungary will not accept any decision that would make life difficult for local companies or reduce the state’s economic sovereignty, ”the state secretary said last week.
Hungary has the lowest corporate tax in the European Union, at 9% of corporate income.