The leaders of the 27 EU member states announced on Thursday that they approved the transfer into European law of a minimum tax of 15% on the profits of multinational companies after the lifting of the Hungarian and Polish blockades, writes AFP.

The entry into force of the measure in Europe is scheduled for December 31, 2023. The unanimity of the 27 was needed to confirm the draft directive drawn up by the Commission, which implements the historic agreement on greater tax fairness approved last year by some 140 countries under the auspices of the OECD.

Warsaw and Budapest have blocked the file one by one since the start of the year to get EU approval for their recovery plans, backed by billions of euros in subsidies.

After getting the green light on recovery plans, the two capitals finally lifted their reservations to compromise on several documents, which also include unlocking 18 billion euros in financial aid for Ukraine in 2023.

“It was a long road, with obstacles at every step. Today there is unity, and all EU member states and citizens will benefit from it,” Economy Commissioner Paolo Gentiloni said in a statement.

The global minimum tax is only part (known as the second tier) of the OECD agreement.

The first tier, which involves taxing profit-making companies to put an end to certain tax evasion practices, targets digital giants in particular. This requires an international agreement, which has not yet been finalized.

French President Emmanuel Macron, who has been at the forefront of the cause for several years, welcomed “important progress for all those who support fiscal justice like us”.

“We are implementing one of my most expensive projects in Europe: minimum corporate taxation at the global level,” German Chancellor Olaf Scholz also congratulated.