The goal of the global minimum tax is to impose a corporate income tax rate of at least 15 percent on large multinational companies in order to combat tax avoidance. EU member states are required to implement the tax, but Finance Minister Jürgen Ligi (Reform) told von der Leyen that its application should be more flexible.

He noted that as of this year, 55 countries have adopted the minimum tax, but only EU member states are bound by a directive that makes implementation mandatory.

"Only the European Union has made the implementation of the minimum tax obligatory for member states through a directive, stripping them of the ability to respond flexibly to changing circumstances," Ligi said.

According to Ligi, this puts EU businesses at a disadvantage compared with those in the rest of the world, as it introduces complex tax rules and a heavy administrative burden.

The finance minister also pointed out that Estonia is home to very few parent companies of multinational groups. As a result, the cost of implementing the tax would be high, while the effect would be marginal. He added that it amounts to a very expensive solidarity project at a time when Estonia needs resources for other priorities, such as defense spending.

Ligi therefore proposed that the EU consider three options: suspend the directive, repeal it entirely or grant a permanent exemption to small countries with few multinational parent companies operating on their territory.

According to the Ministry of Finance, Estonia is ready to contribute to finding solutions that strike a balance between EU member states' competitiveness, tax revenues and administrative burden.

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