Hungary opposes pillar two directive

At the ECOFIN meeting of 17 June 2022, Poland withdrew its objections to the EC proposal for a directive on ensuring a global minimum level of taxation for multinational groups in the EU. However, Hungary has now opposed it, citing the worsening economic situation in Europe. Hungarian Finance Minister Mihály Varga said ‘introducing the global minimum tax at such an early stage would cause serious damage to the European economies’. Some MEPs have already suggested that a move to enhanced cooperation on tax matters, rather than the current requirement for unanimity, should be considered if the block remains.