COUNCIL OF THE EU: latest

12/7/2016

EU and Monaco sign deal on automatic exchange of tax data

On 12 July 2016, the European Union and Monaco signed an agreement aimed at improving tax compliance by private savers.

The agreement will contribute to efforts to clamp down on tax evasion, by requiring the EU member states and Monaco to exchange information automatically. This will allow their tax administrations improved cross-border access to information on the financial accounts of each other's residents.

The agreement upgrades a 2004 agreement that ensured that Monaco applied measures equivalent to those in an EU directive on the taxation of savings income. The aim is to extend the automatic exchange of information on financial accounts in order to prevent taxpayers from hiding capital representing income or assets for which tax has not been paid.

12/7/2016

Council conclusions on finalizing the post crisis Basel reforms

The Council adopted conclusions on the completion of work on post-crisis banking reform. The reform has been undertaken by the Basel committee, a forum of supervisory authorities aimed at enhancing cooperation and improving bank supervision worldwide.

"THE COUNCIL OF THE EUROPEAN UNION:

REITERATES its support for the work by the Basel Committee to refine elements of the Basel III framework by the end of 2016 to ensure regulatory certainty, its coherence and effectiveness, while preserving the risk sensitivity of banking regulation.

STRESSES the importance that the Basel Committee carefully assesses the design and calibration of this reform package, on the basis of a comprehensive and transparent quantitative impact analysis, taking into account in its global calibration also the distribution of its impact on the different banking models and across jurisdictions.

NOTES that the reform package would not be expected to result in a significant increase in the overall capital requirements for the banking sector, therefore, not resulting in significant differences for specific regions of the world."

12/7/2016

Economic, employment and fiscal policies: Council issues country-specific recommendations

 On 12 July 2016, the Council issued recommendations on economic, employment and fiscal policies planned by the member states. The Council thereby concluded the 2016 "European Semester", an annual policy monitoring process. The European Council endorsed the recommendations at its meeting in June.  "We look forward to the effective implementation of these country-specific recommendations in the coming months“, said Peter Kažimír, minister for finance of Slovakia and president of the Council. In March 2016, the European Council endorsed the following priorities: relaunching investment;pursuing structural reforms to modernise European economies;conducting responsible fiscal policies.

12/7/2016

Corporate tax avoidance: New rules adopted

On 12 July 2016, the Council adopted new rules addressing some of the practices most commonly used by large companies to reduce their tax liability.

The directive is part of a January 2016 package of Commission proposals to strengthen rules against corporate tax avoidance. The package builds on 2015 OECD recommendations to address tax base erosion and profit shifting (BEPS), endorsed by G20 leaders in November 2015.

"This new directive aims to protect our domestic corporate tax bases against aggressive tax planning practices that directly affect the functioning of the internal market", said Peter Kažimír, minister for finance of Slovakia and president of the Council. "It is therefore an important step, which also demonstrates that we see the fight against such practices not only as our common priority but also our common commitment.“

The directive addresses situations where corporates, mostly multinational groups, take advantage of disparities between national tax systems in order to reduce their tax bills. It responds to the perception of many taxpayers and SMEs that some multinationals do not pay their fair share of tax, thereby distorting tax competition within the EU's single market.

12/7/2016

Remarks by President Donald Tusk at the EU-China summit in Beijing

Thank you very much, especially for your hospitality. Premier Li, I am very pleased to meet with you again for the 18th EU-China Summit! It is not the first time we meet but it is our first meeting here in Beijing.

Today's meeting gives us the opportunity to demonstrate the strength of our Strategic Partnership. Especially in these testing times, as EU and China have both a stake in each other's success.

The European Union welcomes China's Presidency of the G20 this year. You can count on the EU to play a constructive role towards achieving a successful summit in Hangzhou. As two of the largest economies in the world, the EU and China have an important stake, as well as responsibility, in ensuring the growth and stability of the global economy.

The European Union looks forward to closely work with China to resolve international conflicts and address foreign policy priorities. We have to employ all existing channels in both the bilateral and in multilateral contexts, such as the United Nations and the G20. Building on the positive experience of the Iran nuclear talks, we are confident there is much we can contribute to peace and prosperity around the world, especially in Syria, Iraq, Afghanistan or Africa.

The same goes for global issues, like migration, international development assistance, the environment and fighting climate change. These are challenges that can only be resolved through a global response. For this reason, a collaborative EU-China relationship is crucial.

We came here to discuss common challenges, and to do so in a friendly manner. One of those is the protection of the rule-based international order. This may be the biggest challenge ahead of us. It is both in the Chinese and European interest to protect international cooperation based on common rules.

Let me just name one example: Globalisation. It brings so many benefits to our nations. Unfortunately, more and more people feel that it is happening without rules. And if we let these feelings grow, if many start believing that globalisation and international trade are happening without or against common rules, then the first victims will be the Chinese and European economies, not to mention people. That is why we are so openly raising these issues, because we believe a frank discussion is in our mutual interest.

As in every mature partnership we may sometimes have differences of opinion. And being able to discuss these differences openly is part of the strength of our relationship. This is the case, for example, with our discussion on human rights and the rule of law. I stress the importance for the European Union of the freedom of the press, the freedom of expression, association and assembly, including for minorities. I hope that the next session of the human rights dialogue will take place in November in Brussels.

Finally, on the South China Sea we will see an important ruling today. Therefore let me repeat this: The rule-based international order is in our common interest and both China and the EU have to protect it, as this is in our people's best interest.

I am pleased, Mr Premier, that we have this timely opportunity to address our substantial common agenda. Today's summit should send a message to our people and to the rest of the world of our joint commitment to our Strategic Partnership. Thank you.