Statement by Commissioner Gentiloni on the G20's endorsement of the agreement on international taxation reform

Source: European Commission (EC) i, published on Wednesday, October 13 2021.

Today's endorsement by G20 i finance ministers marks a key step towards the implementation of the historic global tax reform agreed last Friday. With 136 jurisdictions on board, including all G20 members, all OECD i members and all EU i Member States that are part of the Inclusive Framework, this is nothing less than a tax revolution.

As we emerge from the shadow of the pandemic, we have a unique opportunity to rebuild our economies on a new footing. We want to see not just a rebound, but a new era of sustained and sustainable growth. The Pandora papers were another reminder of the injustices that characterise our economic system today. The green and digital transition can only happen if it is based on fairness. So this reset of global corporate taxation is a fundamental part of the change we need to see: everyone must pay their fair share.

Once the OECD has finalised the model rules for Pillar 2, the Commission will swiftly put forward a directive for its implementation in the EU. For Pillar 1, we will carefully examine whether a directive is needed to ensure its consistent and effective implementation at EU level.

The European Commission has worked hard to drive forward this international effort. Getting to this point has required difficult choices for many countries, both in the EU and elsewhere. A spirit of compromise and common interest, in Europe and worldwide, enabled us to get here. We should be proud of this triumph for multilateralism. Now we must move forward together and without delay.