EU finance ministers discussed, among other topics, the European Commission’s proposals regarding the EU budget of 2021-2027 and the economic impact of digital currencies, Minister of Finance Mihály Varga said. At the informal ECOFIN session in Vienna the plans for the EU-wide taxation of digital enterprises were also discussed, he added.

EU finance ministers debated recommendations by the European Commission on the deepening of the European Economic and Monetary Union (GMU) on Saturday. Speaking of the plans Minister Varga said the objectives aiming to increase the share of investment were worthy of support; however, the proposal did not satisfactorily address geographical inequalities, and thus it might weaken the economy and the competitiveness of the entire EU.

Speaking of proposals concerning structural reforms and macro-economic stabilization Mihály Varga said he found it unacceptable that the planned cohesion policy – on top of already existing other modification plans – would further restrict the planning and decision-making manouvering room of member states as far as the utilization of EU funds was concerned.

With regard to the draft on the possible options for levying a tax on the digital economy the Minister of Finance said the Government of Hungary supported solutions which did not lead to corporate tax harmonization. Hungary does everything in its power to prevent major IT companies from evading taxes in any EU member state, he added.

At the Friday ECOFIN session, finance ministers and central bank governors discussed a keynote paper tabled by the Austrian EU Council presidency and a study by the Bruegel Institute on the potential economic benefits and risks of crypto currencies. The competitiveness of the EU and the cross-border flow of products and services both necessitate the formation of a common European standpoint, he pointed out.

(Ministry of Finance)