World
Can new EU corporate tax rules make big business pay its fair share?

A landmark global deal setting a minimum corporate tax rate of 15% on multinational companies came into force in the European Union on 1 January.
The EU has for years tried to flex its muscles on corporate tax evasion by introducing a raft of new laws and lodging high-profile court cases against multinationals.
But some of its own member states – such as Ireland, Luxembourg and Cyprus – have continued to allow high-profit companies to dodge both taxes and scrutiny. Profit shifting worldwide has also remained high, causing losses worth billions of euros for the continent while economic inequality deepens.
Now, companies with revenues of at least €750 million active in any of the 27 EU states will face a minimum corporate tax rate of 15%. The bloc’s economy commissioner Paolo Gentiloni described the new year rules as “a new dawn for the taxation of large multinationals”.
The move is part of a sweeping overhaul of the global tax system agreed by some 140 Organisation for Economic Co-operation and Development (OECD) countries in 2021 after a decade of negotiations, and aims to crack down on governments that slash their corporate tax bills to attract investment.
Other countries such as the UK, Norway, Australia, Japan and Canada are also implementing the measures.
While the new interlocking rules have been hailed as groundbreaking, experts told Euronews there is a need to close crucial loopholes to ensure big business is held accountable.
A ‘revolution’ in tax justice
The OECD deal consists of two pillars, the first of which aims to ensure companies pay tax where they do business. The second pillar sets the global minimum tax rate of 15%.
In an interlocking system hailed revolutionary, if one country fails to tax a multinational at this rate, other countries can charge a so-called “top-up tax”.
This does not mean EU countries will necessarily adjust their corporate tax rate to the 15% baseline, since other countries will be able to step in to collect the taxes due from multinationals that pay their levies in low-tax jurisdictions.
This means that in a hypothetical scenario, a French multinational operating in Senegal and shifting its profits to Ireland could see either France or even Senegal charge a top-up tax if it doesn’t pay the minimum rate of 15% in Ireland.
“The concept is revolutionary,” according to Quentin Parrinello, a senior policy adviser at the EU Tax Observatory.
“It’s the first time we have more than 140 countries, including all major economic actors, agree that multinational companies should pay a minimum amount of tax on the profits it reports.”
“There is, in theory, no incentive for a country not to apply the minimum tax because if they don’t, another country will get the tax revenues,” Parrinello added.
Most EU countries have already transposed the EU Directive – that makes the new rules a reality – into law. Five countries – Estonia, Latvia, Lithuania, Malta and Slovakia – have informed the European Commission that they will delay implementation as they have fewer than twelve affected multinationals operating within their borders.
Too many loopholes
But despite its promise, experts fear the reform alone cannot stamp out tax havens or prevent a so-called ‘race to the bottom’ of harmful tax competition between governments.
States can still abide by the new minimum rate whilst offering generous tax credits and other deductions that effectively reduce the tax rate below 15%. Many states are already introducing attractive transferable credits, grants and subsidies to compete for investment.
“We already see this, for example with the IRA (Inflation Reduction Act) in the US. We also have countries such as Ireland, Switzerland, and the Caymans already thinking of their own systems,” Parrinello explained.
Another loophole in the deal allows firms to exclude certain amounts of profits – equal to 8% of the value of tangible assets and 10% of payroll in the first year – from the tax base.
The EU Tax Observatory estimates that this loophole could cost the EU some €26 billion in its first year of implementation. A loophole-free 15% minimum tax could have raised around $95 billion (€87 billion) in the bloc in 2023, the watchdog says, dropping to just $67 billion (€61 billion) with the current design.
“There will not be an end to harmful tax competition and the race to the bottom on taxation,” Chiara Putaturo, Inequality and Tax Policy Advisor at Oxfam’s EU office, said.
“We are seeing a lot of countries like Ireland, Switzerland and also Bermuda changing some of the tax systems they had before to introduce generous refundable tax credit so that they will still be able to have a lower and lower tax rate,” she added.
“The minimum tax is a floor,” Parinello said. “It’s much better to have a floor than nothing. But if you drill holes in the floor, you weaken the overall structure.”
World should move in lockstep
The OECD-designed system is unique in the way it incentivises all world nations to move in lockstep. Countries infamous for attracting giant companies with attractive tax incentives – such as Barbados and Panama – are also signatories.
An overwhelming majority of Swiss voters (78.5%) also backed the new rules in a consultation last June, putting pressure on their government to swiftly adopt the rules.
The US and China have not yet passed the necessary legislation but are likely to be incentivised to do so to ensure other countries do not top up their own tax collections at their expense.
But Putaturo warned that the 15% rate, which is lower than the global average, lacks ambition.
“The majority of countries, globally, have an effective tax rate which is higher than 15%. So this could even bring some countries to lower their tax rate, in a race to the minimum rather than a race to the bottom,” Putaturo explained.
“The minimum tax also does almost anything in terms of the redistribution of tax revenues. The so-called resident countries, where multinationals are headquartered, will have the right to top up the tax to 15% if the tax haven does not collect the tax due. This is a problem for poorer countries because the resident countries are mainly rich countries,” she added.

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Kelsey Grammer Slams Paramount+ for Frasier Cancellation: ‘They Didn’t Really Promote It’

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World
Pope Francis in stable but 'guarded' condition, according to Vatican

Pope Francis’ condition remained stable and “guarded” Thursday, a day when the pontiff did not have difficulty breathing and remained fever-free.
The pope had a “good night” and continued physical therapy at Rome’s Gemelli hospital for his third week of treatment for double pneumonia, the Vatican said Thursday.
“Today, the Holy Father dedicated himself to some work activities during the morning and afternoon, alternating rest and prayer,” the Vatican said. “Before lunch, he received the Eucharist.”
The next update will come Saturday, the Vatican said, because of his stable condition.
CHRISTIANS USE HALLOW APP’S PRAY40 CHALLENGE AMONG OTHER TRADITIONAL WAYS TO GROW CLOSER TO GOD AS LENT BEGINS
Pope Francis waves from the central loggia of St. Peter’s basilica during the Easter ‘Urbi et Orbi’ message and blessing to the City and the World as part of the Holy Week celebrations, in the Vatican on March 31, 2024. (Tiziana Fabi/Pool/AFP/Getty)
“The night passed quietly; the Pope is still resting,” the Holy See press office said earlier Thursday, adding that the Pope’s “clinical condition has remained stable for the last couple of days, and his doctors say he has not had more episodes of respiratory insufficiency.”
The 88-year-old pope, who has chronic lung disease and had part of one lung removed as a young man, has been stable for two days after suffering a pair of respiratory crises on Monday. Doctors underlined that his prognosis remained guarded due to the complex picture.
In recent days, he has been sleeping with a non-invasive mechanical mask to guarantee that his lungs expand properly overnight and help his recovery. He has been transitioning to receiving oxygen with a nasal tube during the day.
The pope on Wednesday marked the start of Lent by receiving ashes on his forehead and by calling the parish priest in Gaza, the Vatican said. He also added physical therapy to his hospital routine of respiratory therapy.
The Catholic Church opened the solemn Lenten season without the pope’s participation. A cardinal took his place leading a short penitential procession between two churches on the Aventine Hill and opened an Ash Wednesday sermon prepared for the pontiff with words of solidarity and thanks.

Girls, with ashes on their foreheads, pray during a rosary prayer for Pope Francis’ health in St. Peter’s Square at the Vatican, Wednesday, March 5, 2025. (AP Photo/Alessandra Tarantino)
On Ash Wednesday, observant Catholics receive a sign of the cross in ashes on their foreheads, a gesture that underscores human mortality. It is an obligatory day of fasting and abstinence that signals the start of Christianity’s most penitent season, leading to Easter on April 20.
The pope was supposed to attend a spiritual retreat this weekend with the rest of the Holy See hierarchy. On Tuesday, the Vatican said the retreat would go ahead without Francis but in “spiritual communion” with him. The theme, selected before Francis got sick, was “Hope in eternal life.”

Mexican painter Roberto Marquez places a painting of Pope Francis he made outside the Agostino Gemelli hospital in Rome on Ash Wednesday. (AP Photo/Gregorio Borgia)
The Associated Press contributed to this report.
World
Trump again spreads baseless claims about Trudeau, Canada’s election

US president accuses outgoing Canadian prime minister of seeking to use issue of tariffs to extend his time in office.
United States President Donald Trump has reiterated baseless claims that outgoing Canadian Prime Minister Justin Trudeau is seeking to use US tariffs against Canada to extend his time in office, as a rift widens between the two countries.
In a social media post on Thursday, Trump said he believed Trudeau “is using the Tariff problem, which he has largely caused, in order to run again for Prime Minister”.
“So much fun to watch!” the US president wrote.
The remark follows a similar post Trump shared on his Truth Social website on Wednesday, accusing Trudeau of using trade tensions as a way “to stay in power”.
“He was unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here? I then realized he is trying to use this issue to stay in power. Good luck Justin!” Trump wrote.
Tensions have soared between the two leaders since Trump first threatened late last year to impose steep tariffs on Canadian goods if Trudeau’s government did not do more to stem irregular migration and drug trafficking over its border with the US.
This week, the Trump administration followed through on its plans and imposed 25-percent tariffs on most Canadian imports, as well as 10-percent levies on oil and gas.
Canada responded by announcing it would be implementing 25-percent tariffs against $106bn (155 billion Canadian) worth of US goods. Tariffs on $21bn (30 billion Canadian) came into immediate effect on Tuesday.
“This is a very dumb thing to do,” Trudeau told reporters on Tuesday of the US measures, which he described as an unjustified “trade war against Canada”.
Trudeau, who has been Canada’s prime minister since 2015, is set to step down as leader of the governing Liberal Party after it chooses its next leader on Sunday.
The new leader is expected to assume the duties of prime minister after a short transition period.
Asked during a news conference on Thursday whether he would consider staying on as prime minister in a caretaker role to help manage the uncertainty surrounding US tariffs, Trudeau said: “No. I will not be.”
He added, “I look forward to a transition to my duly elected successor in the coming days or week.”
Meanwhile, some experts in Canada have said Trump’s attack on Trudeau underscores his ignorance of the country’s political system.
Stewart Prest, a political science professor at the University of British Columbia, said on social media that the US president’s remarks represent “a reckless disregard for the Canadian democratic system”.
“To be clear, Trudeau will step aside after the Liberal leadership race,” Prest wrote on the social media platform Bluesky on Wednesday.
Under Canadian electoral rules, the next federal election must be held by October 20.
But the Liberals, as the party in government, can choose to trigger a vote before then.
An election could also be called earlier if opposition parties pass a vote of no confidence in Canada’s Parliament, which is set to resume on March 24.
As it currently stands, no election date has been formally set.
“Parliamentary democracy is by design more flexible than the American presidential system, with its fixed election dates,” Prest explained.
“That’s deliberate, as it makes it much easier to get rid of a leader who is either unfit or unpopular – or both.”
Many experts have speculated that the Liberals may choose to call a vote shortly after their next leader is chosen in an effort to capitalise on a recent upswing in public support.
At the beginning of the year, the Liberals had been trailing the opposition Conservatives by as many as 26 percentage points.
But Trudeau’s decision to resign – coupled with the race to select his replacement as Liberal leader and Trump’s threats against Canada – have helped the party bounce back in the polls.
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