2018-04-27/28 Informal ECOFIN Meeting
EU FINANCE MINISTERS CALL FOR BETTER COOPERATION AMONG TAX ADMINISTRATIONS TO FIGHT TAX FRAUD
The second day of the informal meeting of EU economy and finance ministers, which was held on 28 April at the National Palace of Culture in Sofia, was devoted to tax issues. The meeting was chaired by Minister of Finance Vladislav Goranov.
The ministers discussed issues related to improving revenue and fighting tax fraud. They underlined the importance of taking additional measures, apart from the legislative initiatives, to improve the administrative cooperation among tax administrations and address practical aspects related to enhancing cooperation and effective use of the data received in the exchange of tax information.
The ministers agreed on the need to launch a discussion on how to improve cooperation and how tax administrations should work more effectively together in order to achieve good results in tax collection.
The agenda also addressed taking coordinated actions to adapt the current corporate tax system to the constantly changing global economy and the international pressure from the globalisation and digitalisation of business. The present weaknesses jeopardise the effective framework which is the base for corporate taxation rules, and taking coordinated actions is the only way to prevent a deterioration of the situation and deepening of the problems.
The ministers united around the need to launch technical discussions about the taxation of the digital economy in a structured and effective result-oriented manner by taking account of the international developments.
“The EU Member States must consider fundamentally how to improve the corporate taxation rules so as to achieve long-term fairness and competitiveness”, Minister Goranov said during the discussion.
EU FINANCE MINISTERS DISCUSS ECONOMIC CONVERGENCE AND CAPITAL MARKETS UNION DURING INFORMAL MEETING IN SOFIA
The Bulgarian Minister of Finance Vladislav Goranov chaired the informal meeting of the EU ministers of economy and finance on 27 April at the National Palace of Culture, Sofia. During the first day of the meeting the EU economic and financial affairs ministers and central bank governors deliberated on the EU’s economic convergence policy and the Capital Markets Union.
During a discussion on the possibilities for spurring economic convergence in the EU Member States, the ministers reviewed the concepts for new instruments and mechanisms supporting convergence inside and outside the Euro area in the context of the deepening of the Economic and Monetary Union (EMU). Recent trends were presented in order to identify the obstacles to convergence and the potential factors to accelerate it. Finance Minister Goranov highlighted:
“Economic convergence is at the foundation of the entire European project. It improves prosperity and economic and political stability both in the Euro area and in the EU as a whole. To deepen the EMU we need political agreement on the working principles of the instruments used to achieve economic convergence which all EU Member States can and should contribute to.”
The ministers also explored ways to tackle the existing capital markets fragmentation. The discussions were focused on some of the key measures to establish the Capital Markets Union (CMU), such as creating new European products, for example the pan-European Pension Product, and the Commission’s proposals to ensure effective and reliable supervisory systems. The new measures for further reducing CMU fragmentation, as proposed in March 2018, were also discussed. All EU initiatives delivered so far under the CMU project, both legislative and non-legislative, aim at providing the building blocks for the realisation of the CMU in the Union, the rapid establishment of which is of utmost importance for further integration in the EU. In this context and considering the broad support for reducing capital markets fragmentation, the ministers agreed that the current institutional framework needs to be improved by ensuring more supervisory convergence.
“The EU should have a clear view how to shape the institutional framework. A more effective and consistent supervision would contribute to eliminating the barriers to cross-border investment, reducing compliance costs for firms, enhancing investor protection and preserving financial stability”, Minister Goranov stated during the debate.
EU MINISTERS OF FINANCE AND ECONOMY GATHER IN SOFIA AT INFORMAL MEETING TO DISCUSS FINANCIAL AND TAX ISSUES
The Minister of Finance Vladislav Goranov, who is presiding at the Economic and Financial Affairs (ECOFIN) Council of the EU, hosts the informal ECOFIN meeting to be held on 27 and 28 April at the National Palace of Culture.
The forum will start with a Eurogroup meeting followed by a press conference. During the first ECOFIN session the ministers of finance and economy and the central bankers of the EU will discuss the convergence policy inside and outside the Euro area, as well as the further reduction of fragmentation within the Capital Markets Union.
The second day of the ECOFIN meeting will be devoted to improving revenue collection and fighting tax fraud in the single market, as well as to corporate taxation and digital economy taxation.