Brussels, 10/07/2015 (Agence Europe) - At the Ecofin Council, European finance ministers will react for the first time to the five presidents' report (by the presidents of the European Commission, European Council, Eurogroup, ECB and European Parliament) on measures to complete economic and monetary union (EMU) in 2025.
Unveiled ahead of the European Summit in June, the report lays down measures to be taken to strengthen economic governance (see EUROPE 11340 and 11348). They will discuss two stages - measures that could be taken from 2015 to 2017 without needing any change in the treaty (such as the establishment of national competitiveness authorities and completion of Banking Union in the eurozone); - more ambitious measures that would be possible in a second phase (drawing up economic convergence rules, the creation of a fiscal capability for the eurozone, operational details for Eurogroup).
The European Commission says that the areas where work should start the soonest are consolidation of the external representation of the eurozone (a proposal in this connection is expected in October) and the establishment of a European deposit (savings) guarantee fund for the eurozone (see EUROPE 11348).
The Luxembourg Presidency of the Council of the EU says it is perfectly normal to address the question of strengthening EMU in the light of the current Greek crisis, although a rationalisation of the European Semester process will alter absolutely nothing in terms of Greece's problems, which go back well before the most recent reform of the Stability and Growth Pact (the 'two-pack and six-pack').
The Ecofin Council will formally adopt the country-specific social and economic recommendations, which brings an end to the current European Semester.
Taxation. The minsters discussion of the European Commission's corporate taxation action plan has been postponed until the finance ministers' meeting in Luxembourg on 11 and 12 September.
The ministers will further examine the proposal on the automatic exchange of tax rulings in October or November and agreement is hoped in December. Two sources say that at technical talks in early July, several countries wanted to go back to an earlier stage on the text. The Luxembourg Presidency says that the question of retroactivity is more important than the Commission's role in the exchange of information, since the degree of retroactivity will determine the burden of work for tax offices. (Mathieu Bion and Elodie Lamer)