On Thursday 23 June, during a debate in the European Parliament’s plenary session, several MEPs called for enhanced cooperation between EU Member States in the field of taxation, as Hungary, after Poland, used its Hungarian veto at the Ecofin Council to prevent the adoption of the directive intended to transpose the OECD agreement on the minimum taxation of multinationals (see EUROPE 12974/8).
Many MEPs have complained that unanimity over tax issues leads to “blackmail” between Member States. Poland and Hungary have taken turns to block the directive on the ‘minimum taxation of multinationals’, despite having agreed to the deal at the OECD last autumn.
“Unanimity must not be an obstacle”, said José Manuel Fernandes (EPP, Portugal), noting that the non-implementation of the directive represented a loss of revenue “of more than one billion euros per year”.
Luděk Niedermayer (EPP, Czech Republic) called for “responsibility” to be taken on the part of Member States. “The unanimity principle which brings strong power to the states must be balanced by the responsibility. [...] In this case, if they will not be responsible, I guess it's time to find the alternative way”, he suggested.
“The French Presidency of the EU Council and President Macron have 7 days left to propose enhanced cooperation between Member States that wish to take the lead in the battle for tax justice”, thundered Claude Gruffat (Greens/EFA, France).
Enhanced cooperation allows those countries that wish to do so, to move forward with European integration even if not all Member States agree, as is the case with the European Public Prosecutor’s Office.
The European Commissioner for Economy, Paolo Gentiloni, is not convinced. “Overall, I think that the EU decision making process (...) should not be undermined”, he said. However, he supported the proposal from the Conference for the Future of Europe to revise the Treaties so that unanimity becomes a qualified majority of Member States to adopt tax measures in the EU Council.
Aurore Lalucq (S&D, France) asked Mr Gentiloni when the European Commission intended to use the “passerelle” clause (article 116 TFEU) to move to qualified majority voting in the Council of the EU and to the ordinary legislative procedure for taxation (see EUROPE 12699/16).
Some MEPs, notably Conservatives, have nevertheless defended unanimity over tax issues. Enikő Győri (Hungary), a member of Viktor Orbán’s Fidesz party, called on her colleagues to stop “Hungary-bashing”. She called for a “minimisation of the damage” caused by the repercussions of the Russian invasion of Ukraine.
Jessica Stegrud (ECR, Sweden) said that the EU should not have competence in matters of taxation.
On behalf of the French Presidency of the EU Council, Clément Beaune gave assurances that his country is “devoting all its efforts until the thirteenth hour” to reach a unanimous agreement on the directive concerning the ‘minimum taxation of multinationals’. (Original version in French by Anne Damiani)