The Debt-Equity Bias Reduction Allowance (DEBRA) directive seeks to reduce the distortionary bias towards debt on the part of companies seeking investment. Two measures are introduced to achieve this, i.e., the deduction of a deemed interest expense on capital (DEBRA) and the further restriction of the deductibility of actual interest expense. The former seeks to promote the attractiveness of equity investments while the latter endeavours to reduce the attractiveness of debt investments. While these measures initially appear to be appropriate, another legislative initiative known as the Pillar 2 directive might undermine its effectiveness. Indeed, this directive attempts to impose a minimum tax rate of 15% on large entities’ profits wherever they operate. While uncommon, the DEBRA might reduce the effective tax rate (ETR) below 15% thereby effectuating the minimum tax. The limited deductibility of interest expense might do the opposite and increase the ETR above 15% thereby preventing such minimum tax. Thus, where the DEBRA directive provides a benefit, the Pillar 2 directive might eliminate it and, where the DEBRA directive introduces a disadvantage, the Pillar 2 directive may neutralize it.