Economic recovery measures, own resources, fair taxation and digital finance: these are the main topics awaiting the EU Finance Ministers on Friday 11 and Saturday 12 September for their informal meeting in Berlin, according to several preparatory documents of the German Presidency.
Economic recovery. Over lunch on Friday, the ministers will discuss the lessons to be drawn from the crisis for a “sovereign Europe after the coronavirus”, while the first working session will be devoted to economic stimulus measures.
“Our aim is to discuss how to make best use of the recovery measures and in particular the Recovery and Resilience Facility to increase growth potential, competitiveness and cohesion in Europe”, the Presidency explains in a note.
Concretely, ministers should exchange views on the economic situation in their countries, on the main priorities for economic recovery as well as on their national recovery plans, detailing the investments to be financed by the Recovery and Resilience Facility, the budgetary instrument at the heart of the European Recovery Plan (see EUROPE 12532/2).
Own resources. The finance ministers will then discuss the EU’s own resources, both in the context of the financing of the European Recovery Plan, but also more broadly, in order to launch a reflection on a “budgetary architecture adapted to the 21st century”.
According to a note prepared for the meeting, Berlin wants to guide discussions on future proposals that the Commission is expected to present on a carbon adjustment mechanism at the EU’s borders, a digital tax, a revision of the EU Emissions Trading Scheme (EU ETS), a common corporate tax base and a financial transaction tax, “for which negotiations on an enhanced cooperation are well advanced” it says.
The ministers will be asked about possible candidates for new own resources, but also about the possibility that resources from the EU’s common policies could be channelled into the EU budget.
“Linking EU policies with revenue for the EU could be a new route in the enforcement of common policies while creating revenue which can be described as a true ‘own resource’ for the EU, which in turn can contribute to overcoming the ‘juste retour’ dilemma”, says the Presidency.
Fair taxation. On Saturday, the ministers will talk about fair taxation. “The aim is to organise a broad exchange of views between Member States at political level, which will give an important impetus to future discussions in the EU Council”, according to a note.
The two pillars of the international tax reform at the OECD (see EUROPE 12553/16) – the implementation of a digital tax and the application of a minimum corporate tax rate – will of course be addressed, which is a high priority for the German Presidency.
Berlin, however, also intends to take the opportunity to gather the ministers’ opinion on the initiatives that should be given priority in their eyes in the tax package presented by the Commission on 15 July (see EUROPE 12528/2), in order to better fight tax evasion.
The legislative proposal to amend the Council Directive (2011/16/EU) on administrative cooperation in the field of taxation, in order to extend the automatic exchange of information to digital platforms such as Uber and Airbnb should also be part of the discussions (see EUROPE 12528/3). This amendment had already been requested in June Council conclusions (see EUROPE 12498/34), and the Presidency hopes for an early agreement on this dossier.
According to the preparatory document, Germany also wishes to address the reform of the 1997 “Code of Conduct for Business Taxation” and the elements of the mandate of the Code of Conduct Group in the Council, which should be amended so that it can “continue to make a constructive contribution to fair and effective taxation”.
Digital finance. Finally, the major financial market players in the European Union will exchange ideas on the different ways of rethinking financial markets in the digital age.
The German Presidency, which believes that it is time to establish a “European Data Union”, wishes to stimulate discussions, in particular on the role of European regulation in the transition from a bank-centric financial system to a system centred on digital platforms. (Original version in French by Marion Fontana)