Poland still agrees on an EU measure to fight tax avoidance. The country was initially opposed to introducing a 15 percent minimum tax for multinationals.
The unexpected Polish bloc threatened to thwart the EU summit in Brussels, just as it would thwart other major EU plans. For example, it would be difficult to give Ukraine EUR 18 billion in aid next year.
Polish Prime Minister Mateusz Morawiecki declined to sign the deal earlier this week. Poland had previously been obstructive for months due to the minimum tax, but still accepted it in June. The country did so only after the European Commission approved the Polish krona recovery plan, good for 36 billion euros in cheap loans and subsidies. As a result, everyone thought that the problem was solved for Poland.
EU president Czech Republic made the minimum sales tax rate part of a package earlier this month. In addition to support for Ukraine, the package also includes a reduction in the EU subsidy penalty for Hungary and that country’s coronavirus recovery plan. All agreements on the components of the package have been challenged by the Polish veto.
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