Bánki: Linking global minimum tax vote to receipt of EU funding ‘unlawful’

Any attempt by the European Commission to link the vote on the proposed global minimum corporate tax rate with the disbursement of EU funds would be wrong and unlawful, Erik Bánki, the Fidesz chairman of the Parliament's economic committee told MTI on Thursday.

The Hungarian government remains opposed to proposed plans to implement a global minimum tax rate that Bánki warned would “double the tax burden of Hungarian businesses,” a move the Fidesz politician called “unacceptable even in peacetime, and downright outrageous in wartime.”

Bánki commented on the European Parliament’s decision to go “further down the slope” on Wednesday with its adoption of a resolution in support of the minimum corporate tax, during which the parliament urged the European Commission to “refrain from approving Hungary’s national recovery and resilience plan,” which could include withholding EU funds until Hungary becomes compliant.

“Anyone who talks about a veto in the case does not know the European decision-making mechanism,” the politician said, highlighting the fact that the EU legal framework is built on consensus decision-making.

“Consensus decision-making means that a matter must be discussed before a decision is reached until there is complete agreement. Full agreement is not achieved through blackmail and threats," Bánki said.

The chair of the Hungarian parliament’s economic committee suggested that Brussels focus on attempting to restore peace to Europe as soon as possible, instead of trying to force through tax increases.

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