EU Commissioner for Taxation Pierre Moscovici had already vowed to make 2016 “the year of tax reform” and on Thursday he dished up a substantial Tax package with the aim to minimise tax avoidance by multinational corporations. The package includes an Anti Tax Avoidance Directive which will update EU legislation to reflect principles set out by the OECD. In short, the package includes measures to block the most common methods used by companies to avoid paying tax, a recommendation to Member States on how to prevent tax abuse, and a proposal for Member States to share tax-related information on multinationals operating in the EU. It also includes actions to promote good governance on tax internationally.
The package follows a number of high-profile tax investigations, including the Luxleaks scandal of 2014. According to Moscovici, it constitutes “a major step towards creating a level-playing field … for fair and effective taxation” and, some would say, a step closer towards harmonising tax policies within the EU. It remains to be seen, however, if Member States will back the legislative texts put forward in the package. The UK, in particular, is understood to be opposed to parts of it. After all, this is an area typically regulated by the national governments, and where countries have been reluctant to EU meddling. But there are substantial gains to be made: according to estimates by the European Parliamentary Research service, aggressive corporate tax planning costs the EU around 50 to 70 billion EUR annually.
Other headline material this week includes the European Parliament Civil Liberties Committee drama when Belgian MEP Louis Michel, father of the current Belgian Prime Minister, went into a rage during a discussion on the new Danish law for asylum seekers. The controversial law allows police to seize certain valuables from asylum seekers. Michel thundered that the law is shameful and contrary to the EU Treaties. The Committee Chair had to ask one of Michel’s colleagues to get him under control.
Migration was also one of the topics at the EU Ministers of Justice and Home Affairs informal meeting this week, including European border controls, counter-terrorism and cybercrime. ENISA (the EU Agency for Network and Information Security) had presented a report earlier in the week detailing current cyber threats and recommendations for making the EU more digitally secure.
Finally, US Presidential candidate Donald Trump continues to stir up debate among EU citizens. This week he labelled Brussels “a hellhole”. Reactions on Twitter were immediate, and in typical Brussels quirky manner, with followers posting “horror” pictures of the city – showing beautiful streets, artisan beer and cuisine - using the #hellhole hashtag.