By Dan Burns

DAVOS, Switzerland (Reuters – A landmark agreement to set a worldwide minimum tax is expected to be approved by the European Union member countries. Implementation may take place in 2024.

Mathias Cormann from the OECD was also a speaker at the World Economic Forum in Davos.

Cormann expressed optimism that the European Commission will present the directive to execute the deal.

Cormann made these remarks as Bruno Le Maire, French Finance Minister, said Tuesday that he believed EU finance ministers will unanimously support the global minimum income tax.

The EU’s approval was thwarted by Poland. In April, the country vetoed an agreement to start the deal with 137 countries.

U.S. approval is currently stalled in Congress. Cormann was then asked whether prospects of U.S. Ratification would be jeopardized if Republicans that broadly oppose the deal win large majorities in Congress and the Senate during the November mid-term elections.

Cormann suggested that the deal could still be executed by other nations even if U.S. lawmakers decline to join. This would disadvantage U.S. multinational companies.

Cormann stated, “I cannot imagine any country making a decision that would place themselves in such a disadvantage.” I believe this, regardless of the number in Congress… it is clearly in the U.S. interest.”

Congress must approve modifications to the 10.5% U.S. international minimum tax, known as GILTI. This includes raising it to 15% and changing it to a country by country system.

These modifications were included initially in U.S. president Joe Biden’s broad social and climate bill. However, the bill was stopped last year due to objections by centrist Senate Democrats.

As midterm congressional elections near, and lawmakers express concerns over higher inflation and spending, the prospects of a reduced spending package that includes tax changes are becoming increasingly difficult.