Hungary blocked an EU directive that would enforce a 15% minimum tax on multinational corporations. The government contended the levy poses a “low blow” to European competitiveness and risks job losses.

This tax reform originated from an OECD agreement reached the previous year, with endorsement from 136 nations representing over 90% of worldwide GDP. The coronavirus crisis accelerated these negotiations as countries sought fiscal revenue boosts and recovery financing.

Estimated to generate over €140 billion annually for public treasuries, the reform requires transposition into EU law through a directive. However, tax policy demands unanimous consent across member states, enabling a single country to obstruct the entire agreement.