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An article by BMB Partners, Taxand Slovakia
At the Munich Security Conference, Chancellor Merz noted the diminished authority of multilateral institutions. The OECD’s historic pillar two deal was conceived in the spirit of cooperative multilateralism and fair taxation. But in an era of strategic rivalry, fiscal sovereignty and geopolitical leverage increasingly outperform formal symmetry and rule-based order. This includes EU law.
Following Donald Trump’s re-election as US president in January 2025, US resistance to the OECD deal followed. The political narrative framed this as recognition of US tax sovereignty. The economic reality is more controversial: the largest beneficiaries are globally dominant US-headquartered groups – particularly technology and digital platform companies – whose foreign effective tax rates were among the central political drivers of the original global minimum tax project.
In an article published in the International Tax Review, tax expert Renáta Bláhová from our Slovakian member firm BMB Partners discusses how geopolitical rivalry is reshaping global tax cooperation, while the OECD’s minimum tax framework fragments and the EU grapples with the ensuing legal fallout.
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