On 12 December 2022, the EU Council announced
that a consensus had been reached on the adoption of a directive integrating the BEPS 2.0 Pillar 2 framework into European regulation. This development came as a surprise, to say the least, after the news that the directive had been excluded from discussions at a meeting of the ECOFIN Council of Ministers and in light of the long hiatus in the approval process owing to the refusal first by Poland, then by Hungary, to vote in favour and the postponement of the start date of the new rules from 2023 to 2024.
This situation had also prompted a number of countries (France, Germany, the Netherlands, Italy and Spain) to draft their own laws
and adopt Pillar 2 standards on an individual basis without waiting for a breakthrough at EU level. In October 2022 the Netherlands published a 337-page bill based on the draft EU directive and the published GloBE rules.
It is notable that the consensus was reached in a relatively informal way by means of ambassadors of the member countries advising the EU Council of their unanimous approval of the draft directive, which is not the usual means of resolving tax matters at EU level. In any event, the final text of the directive will now have to be adopted by the EU Council through a formal procedure. All EU states will be required to implement the directive into their national law by the end of 2023 and it is expected that corporate groups with revenue exceeding € 750 million will begin to be taxed at a minimum rate of 15%.