### 18. wishes that the commission had presented targeted and tailor made csrs for 2021 , instead of identical csrs for all member states , which could have focused on areas not covered by the scope of the rrf; ### 18. deplores that the commission has not presented targeted and tailor-made csrs for 2021 , but instead has proposed identical csrs for all member states; points out that more targeted csrs could have focused on areas not covered by the scope of the rrf; notes that "one-size-fits-all" reform recommendations go against the very idea of country-specific reforms;


### 19. recalls that member states , in their recovery and resilience plans , are required to effectively address all or a significant subset of challenges identified in the relevant csrs , including the fiscal aspects thereof , and that beyond the scope of the rrf , those recommendations that are not addressed remain valid and will continue to be monitored under the european semester framework; ### 19. recalls that member states , in their recovery and resilience plans , are required to effectively address all or a significant subset of challenges identified in the relevant csrs , including the fiscal aspects thereof; encourages the european commission to make sure that this requirement is adhered to when scrutinising the rrps and their implementation; notes that beyond the scope of the rrf , those recommendations that are not addressed remain valid and will continue to be monitored under the european semester framework;


### 20. regrets the fact that the commission has not promoted fiscal csrs that promote medium-term fiscal sustainability , despite the fact that the activation of the general escape clause obliges member states not to endanger fiscal sustainability in the medium term; ### 20. deplores the fact that the commission has not promoted fiscal csrs that promote medium-term fiscal sustainability , despite the fact that the activation of the general escape clause obliges member states not to endanger fiscal sustainability in the medium term; points out that safeguarding medium-term fiscal stability is one of the key challenges many member states face;


### a. whereas in 1977 the council adopted a sixth vat directive with a view to achieving a uniform tax base under which harmonised rates were to be set out; whereas the member states decided to apply a transitional period in which to achieve this , which has since been extended; ### a. whereas in 1977 the council adopted a sixth vat directive with a view to achieving a uniform tax base under which harmonised rates were to be set out; whereas , at the time , all member states have already adopted a system of value added tax in accordance with the first and second council directives of 11 april 1967 on the harmonization of the laws of the member states relating to turnover taxes; whereas the member states decided to apply a transitional period in which to achieve this , which has since been extended;


### b. whereas the vat directive18 has recast and repealed the sixth directive , for the purposes of greater clarification; whereas this directive provides for the transitional rules to be replaced by a definitive system based on taxation in the member state of origin; whereas the transitional system is complex , flawed and structurally vulnerable to fraud; ### b. whereas the vat directive18 has recast and repealed the sixth directive , for the purposes of greater clarification; whereas this directive provides for the transitional rules to be replaced by a definitive system based on taxation in the member state of origin; whereas the transitional system is complex , flawed and vulnerable to fraud;


### c. whereas in 2013 a major overhaul was initiated to introduce a definitive system based on the destination principle , which makes it less vulnerable to fraud19 ; ### c. whereas in 2013 a major overhaul was initiated to introduce a definitive system based on the destination principle , which makes it less vulnerable to fraud19 ; whereas the destination principle implies that vat is levied on the member state of the final consumption and this must lead to tax neutrality;


### d. whereas on 25 may 2018 a proposal for a directive was adopted which introduced detailed arrangements for a definitive vat regime for intra-eu business-to-business trade in goods and put an end to the ‘transitional’ system; whereas parliament adopted its position on 12 february 2019; whereas the council has not yet adopted a position; ### d. whereas on 25 may 2018 a proposal for a directive was adopted which introduced detailed arrangements for a definitive vat regime for intra-eu business-to-business trade in goods and put an end to the ‘transitional’ system; whereas parliament adopted its position on 12 february 2019; whereas the council has not yet adopted a position; whereas this decision blockade delays important decisions on adapting the vat for the challenges we face in the framework of the european economy recovery; and that the absence of action leads to the maintenance of the loopholes that allow the vat gap to grow;


### e. whereas the vat gap in the eu has been reduced from 20% in 2009 to 10% in 2019; whereas owing to the pandemic and its socio-economic effects , this trend was reversed in 2020; whereas estimated losses of eur 164 billion have been incurred , of which one third has fallen into the hands of fraudsters and organised crime networks; ### e. whereas the vat gap in the eu has been reduced from 20% in 2009 to 10% in 2019 , according to fast estimates that indicates that the gap could fall below eur 130 billion; whereas owing to the pandemic and its socio-economic effects , this trend was reversed in 2020; whereas estimated losses of eur 164 billion have been incurred , of which one third has fallen into the hands of fraudsters and organised crime networks; whereas this losses can represent a vat gap of 13.7%; whereas this scenario demands policy strategic options;


### f. whereas opinion no 11/2020 of the court of auditors focuses on the new method put forward for calculating the vat-based own resource; ### f. whereas opinion no 11/2020 of the court of auditors focuses on the new method put forward for calculating the vat-based own resource; whereas this opinion states that the proposal "significantly simplifies the calculation of the member states’ vat-based own resource as compared to the current system" but "identified the risk that the definitive multiannual weighted average rate may not be representative for all member states";


### g. whereas the commission’s ‘action plan for fair and simple taxation supporting the recovery’ is part of the eu’s new strategy for simplifying and adapting taxation to the digitisation of the economy and the green transition , and for combating tax fraud and evasion; ### g. whereas the commission’s ‘action plan for fair and simple taxation supporting the recovery’ is part of the eu’s new strategy for simplifying and adapting taxation to the digitisation of the economy and the green transition , and for combating tax fraud and evasion; whereas this action plan identifies matters related to vat as priorities , focusing on the fight against vat fraud and the modernisation of vat on financial services , taking into account the digitalization of the economy;


### h. whereas , since the adoption of the vat directive , financial services have been , with certain exceptions , exempt from vat on the grounds that they are subject to other taxes (such as tax on insurance premiums); ### deleted


### 3. takes the view that applying a multitude of reduced rates aggravates the complexity and opacity of the tax system , facilitates fraud and increases compliance costs; ### 3. takes the view that applying a multitude of reduced rates aggravates the complexity and opacity of the tax system , facilitates fraud and increases compliance costs; notes , however , that the reduced rates can be used to pursue important objectives , mainly on access to basic necessity goods; understands that the application of reduced rates must lead to a decrease on the price to the consumer;


### 6. observes that smes must pay proportionately higher compliance costs , as these costs are fixed and independent of company size , and that high compliance costs constitute a barrier to entry into the eu internal market; takes the view , therefore , that differentiated vat regimes within the eu may act as a disincentive to exports; ### 6. observes that smes pay proportionately higher compliance costs , as these costs are fixed and independent of company size , and that high compliance costs constitute a barrier to entry into the eu internal market; takes the view , therefore , that significantly differentiated vat regimes within the eu may act as a disincentive to exports;


### 6. observes that smes must pay proportionately higher compliance costs , as these costs are fixed and independent of company size , and that high compliance costs constitute a barrier to entry into the eu internal market; takes the view , therefore , that differentiated vat regimes within the eu may act as a disincentive to exports; ### 6. observes that smes must pay proportionately higher compliance costs , as these costs are fixed and independent of company size , and that high compliance costs constitute a barrier to entry into the eu internal market; takes the view , therefore , that differentiated vat regimes within the eu may act as a disincentive to intra-eu exports;


### 7. notes digitalisation’s potential to reduce compliance costs; maintains that digital innovations23 are likely to reduce compliance costs and help increase the transparency of commercial transactions; stresses the need to ensure data security and individual and corporate privacy; ### 7. notes digitalisation’s potential to reduce compliance costs; maintains that digital innovations23 are likely to reduce compliance costs and help increase the transparency of commercial transactions; stresses the need to ensure data security and individual and corporate privacy; looks forward to the legislative proposal for modernising vat reporting obligations and calls on the commission to come up with less red-tape focusing on easy application by traders;


### 8. observes that the wide variety of rates causes price distortion in the internal market , creating incentives for cross-border purchases and giving rise to increased tax competition between member states; recalls that companies need clear and unambiguous vat rules to encourage cross-border business and reduce their administrative burdens; ### 8. observes that the wide variety of rates causes price distortion in the internal market , creating incentives for cross-border purchases; recalls that companies need clear and unambiguous vat rules to encourage cross-border business and reduce their administrative burdens;


### 11. recalls that for it to have a leverage effect , green taxation must be inclusive , strive for social equity and not undermine businesses’ international competitiveness; observes that the effectiveness of reduced rates in promoting this type of goods and services or , in a broader sense , merit goods (e.g. culture , health , biodiversity) is chiefly a function of the extent to which they are used to promote such goods; ### deleted


### 12. stresses that reduced rates are not an effective way of achieving social or environmental objectives since they incur high costs for governments owing to the size of the rate gap , reduced tax revenues , increased administrative costs , costly checks and inspections , pressure from lobby groups , compliance costs , economic distortions or even tax evasion , and the difficulty of reaching the target groups; ### 12. stresses that reduced rates are not the most effective way of achieving social or environmental objectives since they incur high costs for governments owing to the size of the rate gap , reduced tax revenues , increased administrative costs , costly checks and inspections , pressure from social and economic representatives , compliance costs , economic distortions or even tax evasion , and the difficulty of reaching the target groups;


### 13. takes the view that direct tax incentives , such as direct grants or tax credits targeting specific consumers and producers , are more effective , flexible , visible and cost-effective tools for achieving these social and environmental objectives; ### 13. takes the view that direct tax incentives , such as tax credits targeting specific consumers and producers , are more effective , flexible , visible and cost-effective tools for achieving these social and environmental objectives; notes , however , that these tax incentives are at the core of national tax sovereignty and are comprehended in national competences and , in any scenario , must respect the eu competition policy;


### 14. stresses that a uniform vat system , combined with a direct tax incentive tool such as the income-based tax credit scheme for low-income households , together with a raft of social reforms , would be a winning strategy; recalls that new zealand has a flat-rate vat system and applies tax credit for low-income households; points out that flat-rate subsidies and information campaigns are an option for the promotion of merit goods; ### 14. stresses that a uniform vat system , together with a raft of social reforms , would be a winning strategy; recalls that new zealand has a flat-rate vat system and applies tax credit for low-income households; points out that flat-rate subsidies and information campaigns could be an option for the promotion of merit goods;


### 15. recalls that vat revenue is one of the chief sources of public revenue , accounting for some 21% of total tax revenue in the eu on average; that the vat gap stands at 10% on average; and that vat also constitutes an own resource for the eu budget; stresses that any reduction in the vat base leads to less revenue for public finances; calls on national tax authorities to take initiatives to reduce the vat gap in order to help lift member states out of the current socio-economic crisis; ### 15. recalls that vat revenue is one of the chief sources of public revenue , accounting for some 21% of total tax revenue in the eu on average; that the vat gap stands at 10% on average; and that vat also constitutes an own resource for the eu budget; stresses that any reduction in the vat base leads to less revenue for public finances; calls on national tax authorities to take initiatives to reduce the vat gap in order to improve public finances;


### 18. calls for a simplified vat system with limits on exemptions and non-standard rates to be introduced with a view to promoting competitiveness; ### 18. calls for a simplified vat system with limits on exemptions and non-standard rates to be introduced with a view to promoting competitiveness; notes that such a simplified vat system would still benefit from a one-stop shop in oder to reduce compliance costs for european companies and boost intra-eu trade;


### 18. calls for a simplified vat system with limits on exemptions and non-standard rates to be introduced with a view to promoting competitiveness; ### 18. calls for a simplified vat system with limits on exemptions and non-standard rates to be introduced with a view to promoting competitiveness and improving voluntary compliance;


### 19. stresses that the vat gap is chiefly attributable to the ineffectiveness of enforcement and control measures , particularly those against tax evasion and avoidance and aggressive tax planning; ### 19. stresses that the vat gap is chiefly attributable to the ineffectiveness of enforcement and control measures , particularly those against tax evasion and avoidance and aggressive tax planning; calls , in this regard , on member states to improve administrative cooperation and enhance the performance of national tax authorities;


### 20. recalls that the effectiveness of reduced rates as a policy tool must always be assessed in the specific context of other existing policy tools; adds that reduced rates are often complementary to existing social and environmental policy tools; and that direct tax incentives are instruments that better target low-income households and are generally less costly; ### 20. recalls that the effectiveness of reduced rates as a policy tool must always be assessed in the specific context of other existing policy tools; adds that reduced rates are often complementary to existing social and environmental policy tools;


### 21. stresses the need to move to a definitive vat system based on the principle of taxation in the country of destination; calls on the council to adopt the proposal for a directive of 25 may 2018; ### 21. stresses the need to move to a definitive vat system based on the principle of taxation in the country of destination; calls on the council to adopt the proposal for a directive of 25 may 2018 , without further delay; highlights in this regard the main principles of the prospective definite vat system for cross-border trade taxation of intra-eu goods supplies at the destination and charging and collecting the vat within the member state of destination by the supplier;


### 21. stresses the need to move to a definitive vat system based on the principle of taxation in the country of destination; calls on the council to adopt the proposal for a directive of 25 may 2018; ### 21. stresses the need to move to a definitive vat system based on the principle of taxation in the country of destination; calls on the council to adopt the proposal for a directive of 25 may 2018; given that council adoption is lacking to date , technological solutions to address vat fraud could be considered in the meantime , such as the transaction network analysis (tna) tool , blockchain and split payment.


### 1. welcomes the entry of bulgaria and croatia into the banking union; ### 1. welcomes the entry of bulgaria and croatia into the banking union and the inclusion of the bulgarian lev and the croatian kuna in the exchange rate mechanism (erm ii); takes note of the decisions of the european central bank (ecb) to establish close cooperation with bulgarian national banks and croatian national banks , whereby bulgaria and croatia joined , as of 1 october 2020 , the single supervisory mechanism (ssm)and the single resolution mechanism (srm); highlights that the national banks of bulgaria and croatia are duly represented in the ecb and the srb’s plenary session and extended executive sessions with the same rights and obligations as all other members , including voting rights;


### 2. recalls that the banking union has delivered the institutional set-up for greater market integration , through the ssm and the srm , while a european deposit insurance scheme (edis) is still lacking; ### 2. recalls that the banking union has delivered the institutional set-up for greater market integration , through the ssm and the srm and a high level of deposit protection through the provisions in the dgsd;


### 2. recalls that the banking union has delivered the institutional set-up for greater market integration , through the ssm and the srm , while a european deposit insurance scheme (edis) is still lacking; ### 2. recalls that the banking union has provided the institutional framework for further market integration , through the ssm and the srm , while there is still a lack of a european deposit insurance scheme (edis) that allows for a better link between banks and their sovereign debts , creating a genuine single market for deposits ensuring a level playing field for all depositors in the eu;


### 2. recalls that the banking union has delivered the institutional set-up for greater market integration , through the ssm and the srm , while a european deposit insurance scheme (edis) is still lacking; ### 2. recalls that the banking union has delivered the institutional set-up for greater market integration , through the ssm and the srm , while a european deposit insurance scheme (edis) is still lacking; welcomes the possible revision of the resolution framework and supports the current reflection for further harmonisation of insolvency laws , with a view to increase the efficiency and coherence of crisis management of banks in the eu , as well as for the creation of a deposit insurance mechanism in the banking union aiming to enhance the level of deposit protection;


### 3. considers that banks’ response to the current crisis demonstrates that the regulatory reforms in the past decade , as well as the institutional set-up , have resulted in better-capitalised and less-leveraged banks; ### 3. considers that banks were able to respond to the current crisis with resilience as they were being better-capitalized and less-leveraged than a decade ago , demonstrating positive effects of the institutional set-up that has been put in place and the regulatory reforms following the 2008 financial crisis; contemplates , nevertheless , that the banking sector is characterised by certain structural inefficiencies , which can be further exacerbated by the current crisis; believes that the deteriorating asset quality of banks and persisting low interest rate environment may increase the level of npls in the banks’ balance sheet and impact the already subdued profitability , potentially leading to insolvency cases particularly for the most affected sectors; considers urgent and immediate action is required;


### 3. considers that banks’ response to the current crisis demonstrates that the regulatory reforms in the past decade , as well as the institutional set-up , have resulted in better-capitalised and less-leveraged banks; ### 3. considers that banks’ response to the current crisis demonstrates that the regulatory reforms in the past decade , as well as the institutional set-up , have resulted in better-capitalised , less-leveraged and therefore more resilient banks;


### 3. considers that banks’ response to the current crisis demonstrates that the regulatory reforms in the past decade , as well as the institutional set-up , have resulted in better-capitalised and less-leveraged banks; ### 3. considers that banks’ response to the current crisis demonstrates that the regulatory reforms in the past decade , as well as the institutional set-up , have resulted in better-capitalised and less-leveraged banks; considers that the full weight of the recovery from the crisis should not fall on the banks , but instead that a strong capital markets union should be promoted that contributes to the resilient relaunch and recovery of the european economy;


### 4. considers that while the good relationship between the ssm and the srb has been fundamental from the inception of the system , a strengthened approach to cooperation between the two pillars is particularly important in the current context; ### 4. considers that while the good relationship between the ssm and the srb has been fundamental from the inception of the system , a strengthened approach to cooperation between the two pillars is particularly important in the current context to ensure appropriate and timely action;


### 5. underlines the vital contribution to addressing the crisis of public guarantee schemes , moratoria on loan repayments for borrowers in financial difficulty , the central banks’ liquidity programmes and the ecb’s targeted longer-term refinancing operations (tltro) and pandemic emergency purchase programme (pepp); ### 5. underlines the vital contribution to addressing the crisis of public guarantee schemes , moratoria on loan repayments for borrowers in financial difficulty , central banks’ liquidity programmes , the ecb’s targeted longer-term refinancing operations(tltro) and pandemic emergency purchase programme (pepp); further highlights the significance of the flexibility extended by regulators for banks to operate below pillar 2 guidance (p2g) and with reduced capital requirements;


### 5. underlines the vital contribution to addressing the crisis of public guarantee schemes , moratoria on loan repayments for borrowers in financial difficulty , the central banks’ liquidity programmes and the ecb’s targeted longer-term refinancing operations (tltro) and pandemic emergency purchase programme (pepp); ### 5. underlines the vital contribution to addressing the crisis of public guarantee schemes , moratoria on loan repayments for borrowers in financial difficulty , the central banks’ liquidity programmes and the ecb’s targeted longer-term refinancing operations (tltro) and pandemic emergency purchase programme (pepp); therefore all the above mentioned measures should be kept in place as long as necessary and they shall be only gradually changed;


### 6. notes the ‘quick fix’ to the capital requirements regulation31 extending transitional arrangements in order to support banks’ lending capacity32 ; ### 6. welcomes the ‘crr quick fix’ with targeted changes to the capital requirements regulation in order to support banks’ lending capacity to households and businesses mitigating the economic impact of the covid-19 pandemic and ensuring that the regulatory framework interacts smoothly with other measures addressing the crisis;


### 6. notes the ‘quick fix’ to the capital requirements regulation31 extending transitional arrangements in order to support banks’ lending capacity32 ; ### 6. welcomes the ‘crr quick fix’ with targeted changes to the capital requirements regulation31 in order to support banks’ lending capacity to households and businesses mitigating the economic impact of the covid-19 pandemic and ensuring that the regulatory framework interacts smoothly with other measures addressing the crisis32;


### — having regard to the memoranda of understanding on supervisory cooperation between the uk supervisory authorities and the eu and its member states’ supervisory authorities , ### deleted


### a. whereas overall , the banking sector has responded to the covid-19 pandemic with resilience , mostly founded on the regulatory reforms enacted since the global financial crisis and further supported by extraordinary public policy relief measures and capital conservation practices; ### a. whereas overall , the banking sector has responded to the covid-19 pandemic with resilience , founded on the regulatory overhaul enacted since the global financial crisis , facilitated by the single european rulebook and single supervision in the banking union , and supported by extraordinary public policy relief measures and capital conservation practices;


### a. whereas overall , the banking sector has responded to the covid-19 pandemic with resilience , mostly founded on the regulatory reforms enacted since the global financial crisis and further supported by extraordinary public policy relief measures and capital conservation practices; ### a. whereas overall , the banking sector has responded to the covid-19 pandemic with resilience , also founded on the regulatory reforms enacted since the global financial crisis and further supported by extraordinary public policy relief measures and capital conservation practices;


### b. whereas the completion of the banking union beyond its two pillars , the single supervisory mechanism (ssm) and the single resolution mechanism (srm) , is pending; ### b. whereas the completion of the banking union beyond its two existing pillars remains a priority; whereas targeted reforms in the resolution and deposit insurance area to complete the banking union should further enhance the robustness of banks and safeguard overall financial stability;


### c. whereas the lack of a solution to the treatment of sovereign debt exposures and national options and discretions persists , undermining the european dimension of the banking union; ### c. whereas banks have been developing concentrated exposures toward certain sovereigns but a solution to the treatment of sovereign debt exposures is still to be addressed; whereas a number of national discretions within legislative framework persist , undermining the european dimension of the banking union;


### c. whereas the lack of a solution to the treatment of sovereign debt exposures and national options and discretions persists , undermining the european dimension of the banking union; ### c. whereas in the banking prudential framework national options and discretions persists , undermining the european dimension of the banking union;


### c. whereas the lack of a solution to the treatment of sovereign debt exposures and national options and discretions persists , undermining the european dimension of the banking union; ### c. whereas the lack of a solution to the treatment of sovereign debt exposures and national options and discretions persists , undermining the european dimension of the banking union; points out that the rising public debt levels following the pandemic make an appropriate treatment of sovereign exposures more pressing;


### c. whereas the lack of a solution to the treatment of sovereign debt exposures and national options and discretions persists , undermining the european dimension of the banking union; ### c. whereas the lack of a solution to the treatment of sovereign debt exposures still to be discussed at international level and national options and discretions persists , undermining the european dimension of the banking union;


### d. whereas climate change , environmental degradation and the transition to a low-carbon economy bring new risks to banks’ balance sheets; ### d. whereas climate change , environmental degradation and the transition to a low-carbon economy are factors to be taken into account when assessing the sustainability of banks’ balance sheets;


### d. whereas climate change , environmental degradation and the transition to a low-carbon economy bring new risks to banks’ balance sheets; ### d. whereas climate change , environmental degradation and the transition to a low-carbon economy bring new risks to banks’ balance sheets , potentially impacting investments across regions and sectors;


### d. whereas climate change , environmental degradation and the transition to a low-carbon economy bring new risks to banks’ balance sheets; ### d. whereas climate change , environmental degradation and the transition to a low-carbon economy bring new risks to banks’ balance sheets; whereas sophisticated risk models should already capture many of the risks associated with climate change;


### e. whereas consumer protection varies across the banking union; ### e. whereas , despite strong eu consumer protection rules , national rules implementing european consumer protection requirements vary across the banking union , pointing to the need for harmonisation;


### e. whereas consumer protection varies across the banking union; ### e. whereas consumer protection varies across the banking union , while the eu legislation provides a strong minimum baseline;


### f. whereas prudential and anti-money laundering supervision is necessary; ### f. whereas stronger eu prudential and anti-money laundering (aml) supervision is necessary;


### g. whereas the withdrawal of the uk from the eu has resulted in the relocation of banking services to the eu; ### g. whereas the withdrawal of the uk from the eu has resulted in the relocation of banking services to the eu; whereas the ssm played a crucial steering and monitoring role through its systematic “preparedness” guidance and coordination with significant banks on their operating models; whereas the full assessment of effectiveness of banking sector’s preparedness to the new reality will be tested in the mid and long term perspective;


### i. whereas the crisis management and deposit insurance (cmdi) framework should be proportional , more efficient and more coherent , and should contribute to financial stability; ### i. whereas the crisis management and deposit insurance framework (cmdi) should ensure consistent and efficient handling of all banks , regardless of size or business model , as well as , contribute to preserving financial stability , minimising the use of taxpayers’ money and ensuring a level playing field across the eu;


### i. whereas the crisis management and deposit insurance (cmdi) framework should be proportional , more efficient and more coherent , and should contribute to financial stability; ### i. whereas the crisis management and deposit insurance (cmdi) framework should be proportionate , more efficient and more coherent , and should contribute to financial stability , while duly taking into account the principle of subsidiarity;


### j. whereas depositors across the banking union should enjoy the same level of protection; ### j. whereas supervision and resolution rules , as well as the resolution fund have been centralized , deposit guarantees schemes remain national and differ across member states; whereas depositors across the banking union should enjoy the same level of protection;


### j. whereas depositors across the banking union should enjoy the same level of protection; ### j. whereas depositors across the banking union should enjoy the same level of protection; whereas the provisions in the dgsd provide for a very high minimum baseline of protection of depositors;


### e. whereas current international corporate tax rules are no longer suitable in the context of digitalisation and globalisation of the economy; whereas developments of digitalisation create a challenge in terms of traceability of economic operations and taxable events; ### e. whereas current international corporate tax rules are no longer suitable in the context of digitalisation and globalisation of the economy; whereas developments of digitalisation and a stronger reliance on intangible assets create a challenge in terms of traceability of economic operations and taxable events;


### e. whereas current international corporate tax rules are no longer suitable in the context of digitalisation and globalisation of the economy; whereas developments of digitalisation create a challenge in terms of traceability of economic operations and taxable events; ### e. whereas current international corporate tax rules are no longer suitable in the context of digitalisation and globalisation of the economy; whereas developments of digitalisation create a challenge in terms of traceability of economic operations and taxable events , especially when these operations are cross-border or take place outside the union;


### g. whereas increased transparency in the area of corporate taxation can improve tax collection and is also necessary to strengthen fair competitiveness in the single market , which will make the work of tax authorities more efficient; whereas the use of technology and digitalisation focused on a more efficient use of the available data can support efficiency and transparency of tax authorities and reduce the costs of compliance and increase the trust of the public; ### g. whereas increased transparency in the area of corporate taxation can improve tax collection and is also necessary to strengthen fair competitiveness in the single market , which will make the work of tax authorities more efficient; whereas the use of technology and digitalisation focused on a more efficient use of the available data can support efficiency and transparency of tax authorities and reduce the costs of compliance and increase the trust of the public; points out that progress made with digitalisation for both taxpayers and tax authorities opens alternatives on how to systematically address certain tax fraud;


### g. whereas increased transparency in the area of corporate taxation can improve tax collection and is also necessary to strengthen fair competitiveness in the single market , which will make the work of tax authorities more efficient; whereas the use of technology and digitalisation focused on a more efficient use of the available data can support efficiency and transparency of tax authorities and reduce the costs of compliance and increase the trust of the public; ### g. whereas better cooperation between union tax authorities in the area of corporate taxation can improve tax collection and is also necessary to strengthen fair competitiveness in the single market , which will make the work of tax authorities more efficient; whereas the use of technology and digitalisation focused on a more efficient use of the available data can support efficiency and transparency of tax authorities and reduce the costs of compliance and increase the trust of the public;


### 4. recalls that any tax measures , temporary or not , should foster and not hamper the competitiveness of european businesses; stresses that the reporting requirements should not generate higher administrative costs for economic actors , notably for small and medium-sized enterprises (smes); notes that to effectively address lost tax revenues , better quality and possible higher quantities of data may be needed , but only data effectively used , and collected from taxpayers only once with utmost security , should be collected; notes that data should aim to simplify various obligations of taxpayers , while artificial intelligence (ai) and various softwares should be used to maximise the effectiveness of the use of data; ### 4. recalls that any tax measures , temporary or not , should foster and not hamper the competitiveness of european businesses; stresses that the reporting requirements should not generate higher administrative costs for economic actors , notably for small and medium-sized enterprises (smes); notes that to effectively address lost tax revenues , better quality and possible higher quantities of data may be needed; insists on the principle that any data gathered by the tax authorities from the taxpayers must be provided to the member states only once , with utmost security and respect for data protection laws; notes that data should aim to simplify various obligations of taxpayers , while artificial intelligence (ai) and various softwares should be used to maximise the effectiveness of the use of data;


### 4. recalls that any tax measures , temporary or not , should foster and not hamper the competitiveness of european businesses; stresses that the reporting requirements should not generate higher administrative costs for economic actors , notably for small and medium-sized enterprises (smes); notes that to effectively address lost tax revenues , better quality and possible higher quantities of data may be needed , but only data effectively used , and collected from taxpayers only once with utmost security , should be collected; notes that data should aim to simplify various obligations of taxpayers , while artificial intelligence (ai) and various softwares should be used to maximise the effectiveness of the use of data; ### 4. recalls that any tax measures , temporary or not , should foster and not hamper the competitiveness of european businesses; stresses that the reporting requirements should not generate higher administrative costs for economic actors , notably for small and medium-sized enterprises (smes); notes that to effectively address lost tax revenues , better quality and possible higher quantities of data may be needed , but only data effectively used , and collected from taxpayers only once with utmost security , should be collected; notes the potential of data and digital tools to cut red tape and simplify various obligations of taxpayers , while artificial intelligence (ai) and various softwares should be used to maximise the effectiveness of the use of data;


### 5. is of the opinion that better estimates of overall tax losses in the union are essential for efficient proposals on ways to effectively reduce tax losses; ### 5. is of the opinion that better estimates of overall tax losses in the union are essential for efficient proposals on ways to effectively reduce tax losses; notes that data on overall tax losses should be further analysed and compiled;


### 11. highlights that the current global tax environment is outdated , and can only be fully addressed on a global level; considers that a multilateral agreement negotiated oecd/g20 inclusive framework on beps is a unique opportunity to make international tax architecture more consistent with the development of the economy by further addressing the distortions of fair competition in the market , which was accentuated during the covid-19 crisis and highlighted problems related to the taxing of large multinational enterprises (mnes); ### 11. highlights that the current global tax environment is outdated , and can only be fully addressed on a global level; welcomes the multilateral agreement negotiated and agreed on the oecd/g20 inclusive framework on beps and a unique opportunity to make international tax architecture more consistent with the development of the economy by further addressing the distortions of fair competition in the market , which was accentuated during the covid-19 crisis and highlighted problems related to the taxing of large multinational enterprises (mnes);


### 12. welcomes the efforts of the commission to address the problem at least partially by introducing various initiatives , but stresses the high importance of the union in contributing to the success of global negotiations towards the ongoing necessary reforms; ### deleted


### 13. notes that the reduction of the estimated gap10 due to corporate tax avoidance at around eur 35 billion per year from the previous commission estimations of eur 50-70 billion before anti-beps measures were introduced and the correlation between an improvement and the legislative efforts on tax avoidance carried out by the commission; stresses that situations where some firms are still able to reduce their tax bill is undermining fair competition in the single market and often harming the competitiveness of smes; ### 13. notes that the reduction of the estimated gap10 due to corporate tax avoidance at around eur 35 billion per year from the previous commission estimations of eur 50-70 billion before anti-beps measures were introduced and the correlation between an improvement and the legislative efforts on tax avoidance carried out by the commission; stresses that situations where some firms are still able to reduce their tax bill via tax avoidance or aggressive tax planning is undermining fair competition in the single market and often harming the competitiveness of smes;


### 14. welcomes the two-pillar agreement reached at the g7/g20 levels on the allocation of taxing rights and the application of a minimum effective tax rate of at least 15% on the global profits of mnes; notes the need for effective implementation; calls on the commission to make the necessary legislative proposals to implement the agreement into union law as quickly as possible after the finalisation of the technical work on the oecd approach; ### 14. welcomes the two-pillar agreement reached at the g7/g20 levels on the allocation of taxing rights and the application of a minimum effective tax rate of 15% on the global profits of mnes; notes the need for effective implementation; calls on the commission to make the necessary legislative proposals to implement the agreement into union law as quickly as possible after the finalisation of the technical work on the oecd approach;


### 18. considers that the new corporate tax agenda should include a mechanism to address the debt-equity bias through an incentive system , helping to support the resilience of companies in adverse economic circumstances in the future; ### 18. considers that the new corporate tax agenda should include a mechanism to address the debt-equity bias through an incentive system , helping to support the resilience of companies in adverse economic circumstances in the future and removing incentives favouring a corporate financing model that is too reliant on debt;


### the european parliament calls on the commission to reflect the experience and identify remaining gaps in the existing council directive (eu) 2017/1852 on tax dispute resolution mechanisms in the union , in order to address the existing conflicts and uncertainties regarding residency for both natural and corporate persons , causing risks of double taxation. the regime set out in the directive must ensure the time limits for obtaining a decision , which will be legally binding and enforced. the analyses should be done in 2022 , and a possible change of directive presented in 2023. ### the european parliament calls on the commission to reflect the experience and identify remaining gaps in the existing council directive (eu)2017/1852 on tax dispute resolution mechanisms in the union , and propose an efficient way(s) to address the existing conflicts and uncertainties regarding residency for both natural and corporate persons , causing risks of double taxation. the regime set out must ensure time limits , reflecting the problems caused by dispute to taxpayers for obtaining a decision will be legally binding and enforced. given the changes in the post-covid economy , including a move to remote working , the commission should as soon as possible assess if current legislation is sufficient to reduce the risks of double taxation for taxpayers and , if appropriate , carry out a revision of the directive , or alternatively , propose new measures. it is also noted the directive lacks visibility and more should be done by the commission to ensure citizens are aware that this mechanism is available.


### - relaunch the initiative of the definitive regime as the most natural and efficient way to address tax fraud , costing a significantly large yearly loss; ### - relaunch the initiative of the definitive regime as the most natural and efficient way to address vat tax fraud , costing a significantly large yearly loss;


### - design and propose online reporting of data for (at least) cross-border union trade , preferably by using data from e-invoicing (or from an alternative , but keeping the principle that the data must be provided once) , including efficient and highly secure centralised/decentralised data processing for detection of fraud. the data will replace all existing reporting requirements in this area , and cause the overall costs of compliance to be reduced , notably for smes. ### - design and propose a standard for online reporting of data for (in first instance) cross-border union trade , preferably by using data from e-invoicing (or from an alternative , but keeping the principle that the data must be provided once) , including efficient and highly secure centralised/decentralised data processing for detection of fraud. the data will replace all existing reporting requirements in this area , and cause the overall costs of compliance to be reduced , notably for smes. data collected should be used with due respect for confidentiality , and with consideration of all relevant data protection laws. use of blockchain (or alternative) technology can be considered and schemes based on common union standards could be operated by private suppliers.


### - design and propose online reporting of data for (at least) cross-border union trade , preferably by using data from e-invoicing (or from an alternative , but keeping the principle that the data must be provided once) , including efficient and highly secure centralised/decentralised data processing for detection of fraud. the data will replace all existing reporting requirements in this area , and cause the overall costs of compliance to be reduced , notably for smes. ### - design and propose online reporting of data for (at least) cross-border union trade , preferably by using data from e-invoicing (or from an alternative , but keeping the principle that the data must be provided only once) , including efficient and highly secure centralised/decentralised data processing for detection of fraud. the data will replace all existing reporting requirements in this area , and cause the overall costs of compliance to be reduced , notably for smes.


### a. whereas eu taxpayers held eur 1.5 trillion offshore in 2016 , resulting in an average tax revenue loss of eur 46 billion in the eu as a result of tax evasion by individuals12 ; ### a. whereas eu taxpayers held eur 1.5 trillion offshore in 2016 , resulting in an average tax revenue loss of eur 46 billion in the eu as a result of tax evasion by individuals12 ; that this amount is only a parcel of the general problem of tax avoidance by individuals and companies; and that this value is illegitimately subtracted to national budgets and , therefore , represents an additional effort to compliant taxpayers;


### b. whereas the difficulties encountered in the council in agreeing on the improvements put forward by the commission demonstrates the need to move to a qualified majority in tax matters; ### deleted


### b. whereas the difficulties encountered in the council in agreeing on the improvements put forward by the commission demonstrates the need to move to a qualified majority in tax matters; ### b. whereas the difficulties encountered in the council in agreeing on the improvements put forward by the commission demonstrates the need to promote the debate on the decision making procedure , in line with the provisions of the treaties in tax matters;


### c. whereas it is in the responsibility of parliament to exercise political scrutiny over the commission , including its enforcement and implementation policy , and whereas this requires adequate access to relevant information; ### c. whereas “the european parliament shall , jointly with the council , exercise legislative and budgetary functions. it shall exercise functions of political control and consultation as laid down in the treaties” according to article 14 teu and whereas “the commission , as a body , shall be responsible to the european parliament” according to article 17.8 teu;


### d. whereas the dac framework should be accompanied by equal attention to the capacity and willingness of tax administrations to facilitate compliance; ### d. whereas the dac framework should be accompanied by equal attention to the capacity and willingness of tax administrations to facilitate compliance and serve the interests of taxpayers;


### 1. welcomes the fact that the dac has been continuously improved to widen the scope of the exchange of information (eoi) in order to curb tax fraud , tax evasion and tax avoidance , including the recent proposal on dac7 , as well as the plans for dac8; ### 1. welcomes the fact that the dac has been continuously improved to widen the scope of the exchange of information (eoi) in order to curb tax fraud , tax evasion and tax avoidance , including the recent proposal on dac7 , as well as the plans for dac8; notes however that while the scope of the dac framework has been steadily increased , too little attention was paid to equally improving data quality and completeness;


### 1. welcomes the fact that the dac has been continuously improved to widen the scope of the exchange of information (eoi) in order to curb tax fraud , tax evasion and tax avoidance , including the recent proposal on dac7 , as well as the plans for dac8; ### 1. welcomes the fact that the eu institutions have been continuously reviewing and gradually tightening the dac rules and procedures under which the member states cooperate with each other with a view to exchanging of information in order to improve member states ability to prevent cross-border tax fraud , tax evasion and tax avoidance , including the recent proposal on dac7 , as well as the plans for dac8;


### 2. notes , however , that some types of income and assets are still excluded from the scope , which presents a risk of circumventing tax obligations; calls on the commission to assess the need and the most appropriate way to include the following ownership information , items of income and non-financial assets in the automatic exchange of information (aeoi): (a) the beneficial owners of immovable property and companies; (b) capital gains related to immovable property and capital gains related to financial assets , in particular to find ways for tax administrations to be better informed to identify realised capital gains; (c) non-custodial dividend income; (d) non-financial assets such as cash , art , gold or other valuables held at free ports , customs warehouses or safe deposit boxes; and (e) ownership of yachts and private jets; ### 2. notes , however , that better implementation and application of rules by tax authorities are necessary in order to minimize the risk of circumventing tax obligations; calls on the commission to assess the need and the most appropriate way to , first of all , guarantee a better enforcement of existing dac rules in domestic laws of the member states and application by tax authorities , and secondly , expand the scope of mandatory information exchange to include crypto-currencies , non-custodial dividend income and advance cross-border tax rulings issued for natural persons;


### 3. observes that the effectiveness of dac1 is seriously constrained by the fact that member states are only required to report at least two categories of income; calls on the commission to make it mandatory to report on all categories of income and assets in the scope; ### 3. observes that the effectiveness of dac1 is seriously constrained by the fact that member states are only required to report the data that is readily available; takes note of the recent amendment , that obliges the member states to exchange all information that is available , but on at least two categories of income for taxable periods until 2024 and on at least four categories of income with other member states with respect to taxable periods as of 2024; calls on the commission’s further assessment before suggesting new steps; urges the commission to put forward a proposal to oblige member states to exchange information on all the categories of income provisioned in the directive;


### 4. observes that the definition of reporting financial institutions (fis) and types of accounts that need to be reported in dac2 involves a risk of circumvention and increased bureaucracy; calls for an assessment by the commission of the need to extend the reporting obligations to other relevant types of fis , to review the definition of excluded accounts and to remove the thresholds applicable to pre-existing entity accounts; ### 4. observes that the definition of reporting financial institutions (fis) and types of accounts that need to be reported in dac2 involves a risk of circumvention and increased bureaucracy; calls on the commission to guide member states to achieve better dac2 data completeness , to establish specific procedures for auditing the financial institutions regarding the quality and completeness of the data sent; calls for an assessment by the commission to check the need to possibly extend the reporting obligations to other relevant types of fis , to avoid further red-tape and to possibly review the definition of excluded accounts and to remove the thresholds applicable to pre-existing entity accounts;


### 5. observes that dac3 contains certain blind spots; therefore calls for the scope of eoi under dac3 to be widened to include informal arrangements , post-transaction agreements , natural persons and rulings which are still valid , but which were issued , amended or renewed before 2012; ### 5. observes that dac3 data entries lack quality and that available data to member states have not been sufficiently evaluated; calls on them to better exploit the existing datasets before possibly widening the scope of eoi under dac3 to include informal arrangements , post-transaction agreements , natural persons and rulings which are still valid , but which were issued , amended or renewed before 2012;


### 6. notes that the information exchanged is of limited quality; calls for stronger enforcement procedures at member state level; calls on the commission to include on the spot visits in member states and to assess the effectiveness of their monitoring schemes; calls on the member states to establish a system of quality and completeness checks of dac data , as well as procedures for the audit of reporting obliged entities regarding the quality and completeness of data sent; ### 6. notes that the information exchanged is of limited quality; calls for stronger enforcement procedures at member state level and to set up domestic systems of penalties that they apply for incorrect or incomplete reporting having an effective deterrent effect; calls on the commission to include on the spot visits in member states and to assess the effectiveness of their monitoring schemes; calls on the member states to establish a system of quality and completeness checks of dac data , as well as procedures for the audit of reporting obliged entities regarding the quality and completeness of data sent;


### 8. notes that the effectiveness of the dac relies heavily on the anti-money laundering (aml) directives in place at member state level; observes that the incorrect implementation of these directives , the lack of effective enforcement and the remaining weaknesses in the aml framework undermine the effectiveness of the dac; ### 8. notes that dac5 provided access by tax authorities to beneficial ownership information as collected under anti-money-laundering (aml) rules; observes that the fifth aml directive (amld5) widened the scope for interaction between aml and dac and that theamld5 had to be transposed by member states by 10 january 2020;


### 9. observes that increasingly complex structures are being used to conceal the ultimate beneficial owners and therefore thwart the effective implementation of aml rules; believes there should be no threshold for reporting the beneficial owners; ### 9. calls on the european commission to present , in due time , an evaluation of the interaction between aml and dac 2020;


### 10. notes that the commission monitors the transposition of the dac legislation in the member states; points out , however , that it has so far neither taken direct and effective action to address the lack of quality of the data sent between member states , nor carried out visits to member states , nor has it ensured the effectiveness of sanctions imposed by member states for breaches of the dac reporting provisions; calls on the commission to step up its activities in this regard and to launch infringement procedures , using , among others , the global forum13 and financial action task force reviews; ### 10. notes that the commission monitors the transposition of the dac legislation in the member states; points out , however , that it has so far neither taken direct and effective action to address the lack of quality of the data sent between member states , nor carried out visits to member states , nor has it ensured the effectiveness of sanctions imposed by member states for breaches of the dac reporting provisions; calls on the commission to step up its activities in this regard and to take direct and effective actions to address the lack of quality of data sent by member states , further develop its guidance for member states on implementing the dac legislation , performing risk analysis and using tax information received , and use as an instrument of last resort infringement procedures , using , among others , the global forum and financial action task force reviews;


### 14. regrets the fact that information exchanged on request (eoir) has often been found to be incomplete and required further clarifications; calls on the commission to assess indications that eoir is unsatisfactory with several third countries , including switzerland; ### 14. takes note of the fact that information exchanged on request (eoir) has often been found to be incomplete and required further clarifications; calls on the commission to assess indications that eoir is unsatisfactory with several third countries , including switzerland;


### 15. deplores the fact that one member state , malta , has received an overall ‘partially compliant’ score in the peer review by the global forum for eoir; regrets the fact that material deficiencies have been identified in 18 member states15 ; ### 15. deplores the fact that one member state has received an overall ‘partially compliant’ score in the peer review by the global forum for eoir; regrets the fact that material deficiencies have been identified in 18 member states15 ; calls , therefore , the member states to fully commit with the dac objectives and the increment of eoi best practices;


### 16. notes that the use of information under the dac for non-tax matters requires prior authorisation from the sending member state , which is not always granted; insists that the use of information exchanged under the dac should always be authorised for purposes other than tax matters where this is allowed under the laws of the receiving member state; ### 16. notes that the use of information under the dac for non-tax matters requires prior authorisation from the sending member state , which is not always granted , although commonly based on justified terms; insists that the use of information exchanged under the dac should be authorised for purposes other than tax matters where this is allowed under the laws of the receiving member state; urges , in this context , the member states to fully commit to high standards of respect for citizens fundamental rights , as taxpayers;


### 19. calls on the commission and the member states to establish a common framework for measuring the impact and the cost-benefits of the dac; calls on the commission to publish annually a summary of the information received by member states; ### 19. calls on the commission and the member states to establish a common framework for measuring the impact and the cost-benefits of the dac; calls on the commission to publish annually a summary of the information received by member states; this information must be anonymised and safeguard confidential or sensible information on taxpayers; however , this report must have aggregated and detailed data for a proper democratic scrutiny by the parliament;


### 22. deeply regrets the fact that all member states – with exception of finland and sweden – have refused to grant parliament access to the relevant data to assess the implementation of dac provisions; deplores the fact that the commission has decided to refuse parliament access to the respective data in its possession; considers that parliament is thereby in effect being hindered in exercising its function of political scrutiny over the commission; notes that this implementation report therefore has significant shortcomings; calls on the member states and the commission to put an end to their refusal to share the relevant documents in line with regulation 1049/200116 which applies directly , and the principle of sincere cooperation in article 13(2) of the teu; calls for parliament to use all legal means at its disposal to ensure that it receives all documents needed for a complete assessment of the implementation of the dac; ### 22. deeply regrets the fact that all member states – with exception of finland and sweden –have refused to grant parliament access to the relevant data to assess the implementation of dac provisions; deplores the fact that the commission did not grant parliament access to the respective data in its possession; considers that the commission risks the application of article 17.8 teu that states that “the commission , as a body , shall be responsible to the european parliament”; notes that the parliament has had a lack of information for the preparation of this implementation report; calls on the member states and the commission to put an end to their refusal to share the relevant documents , in line with regulation 1049/2001 , which applies directly , and the principle of sincere cooperation , provisioned in article13(2) of the teu; calls for parliament to use all legal means at its disposal to ensure that it receives all documents needed for a complete assessment of the implementation of the dac;


### — having regard to articles 127(1) and (2) , 130 and 284(3) of the treaty on the functioning of the european union (tfeu) , ### — having regard to articles 123 , 127(1) and (2) , 130 and 284(3) of the treaty on the functioning of the european union (tfeu) ,


### — having regard to the un agenda 2030 for sustainable development and the sustainable development goals (sdgs) , ### deleted


### — having regard to the paris agreement adopted under the united nations framework convention on climate change , ### deleted


### a. whereas , according to the commission’s summer 2021 economic forecast , gdp contracted in 2020 by 6 % in the eu and 6.5 % in the euro area; whereas gdp is forecast to grow by 4.8 % in 2021 and 4.5 % in 2022 in both the eu and the euro area , with significant growth inequalities persisting between and within the member states; ### a. whereas , according to the commission’s summer 2021 economic forecast , gdp contracted in 2020 by 6 % in the eu and 6.5 % in the euro area; whereas gdp is forecast to grow by 4.8 % in 2021 and 4.5 % in 2022 in both the eu and the euro area; whereas the volume of output is projected to return to its pre-crisis level (2019-q4) in the last quarter of 2021 , which is one quarter earlier than expected in the spring forecast for the euro area;


### a. whereas , according to the commission’s summer 2021 economic forecast , gdp contracted in 2020 by 6 % in the eu and 6.5 % in the euro area; whereas gdp is forecast to grow by 4.8 % in 2021 and 4.5 % in 2022 in both the eu and the euro area , with significant growth inequalities persisting between and within the member states; ### a. whereas , according to the commission’s summer 2021 economic forecast , gdp contracted in 2020 by 6 % in the eu and 6.5 % in the euro area; whereas gdp is forecast to grow by 4.8 % in 2021 and 4.5 % in 2022 in both the eu and the euro area , with growth differentials between and within the member states;


### b. whereas , according to eurostat , the unemployment rate in july 2021 stood at 6.9 % in the eu and 7.6 % in the euro area , spread in an uneven way across the eu and with unemployment rates among young people and women remaining much higher; ### deleted


### b. whereas , according to eurostat , the unemployment rate in july 2021 stood at 6.9 % in the eu and 7.6 % in the euro area , spread in an uneven way across the eu and with unemployment rates among young people and women remaining much higher; ### b. whereas , according to eurostat , the unemployment rate in july 2021 stood at 6.9 % in the eu and 7.6 % in the euro area , spread in an uneven way across the eu and with unemployment rates among young people and women remaining much higher; whereas a high youth unemployment rate remains a serious issue to be tackled in the eu;


### c. whereas , according to the eurosystem staff macroeconomic projections of june 2021 , annual inflation for the euro area in the harmonised index of consumer prices (hicp) will be 1.9 % in 2021 , 1.5 % in 2022 and 1.4 % in 2023 on average; whereas inflation projections show substantial variance across the euro area; ### c. whereas , according to the eurosystem staff macroeconomic projections of june 2021 , annual inflation for the euro area in the harmonised index of consumer prices (hicp) will be 1.9 % in 2021 , 1.5 % in 2022 and 1.4 % in 2023 on average; whereas inflation projections show substantial variance across the euro area; whereas the hicp has hit 3% in the eurozone in august 2021 , which represents the highest level in a decade;


### c. whereas , according to the eurosystem staff macroeconomic projections of june 2021 , annual inflation for the euro area in the harmonised index of consumer prices (hicp) will be 1.9 % in 2021 , 1.5 % in 2022 and 1.4 % in 2023 on average; whereas inflation projections show substantial variance across the euro area; ### c. whereas , according to the ecb staff macroeconomic projections of september 2021 , annual inflation for the euro area in the harmonised index of consumer prices (hicp) will be 2.2 % in 2021 , 1.7 % in 2022 and 1.5 % in 2023 on average; whereas inflation projections show substantial variance across the euro area;


### e. whereas , without prejudice to the objective of price stability , the ecb should support the general economic policies in the union with a view to contributing to the achievement of the objectives of the union as laid down in article 3 teu; whereas these objectives include the promotion of peoples’ well-being , economic , social and territorial cohesion , balanced economic growth , a highly competitive social market economy aiming at full employment and social progress , and a high level of protection and improvement of the quality of the environment; ### e. whereas , without prejudice to the objective of price stability , the ecb should support the general economic policies in the union with a view to contributing to the achievement of the objectives of the union as laid down in article 3 teu;


### e. whereas , without prejudice to the objective of price stability , the ecb should support the general economic policies in the union with a view to contributing to the achievement of the objectives of the union as laid down in article 3 teu; whereas these objectives include the promotion of peoples’ well-being , economic , social and territorial cohesion , balanced economic growth , a highly competitive social market economy aiming at full employment and social progress , and a high level of protection and improvement of the quality of the environment; ### e. whereas , without prejudice to the primary objective of price stability , the ecb shall also support the general economic policies in the union with a view to contributing to the achievement of the objectives of the union as laid down in article 3 teu; whereas these objectives include the promotion of peoples’ well-being , economic , social and territorial cohesion , balanced economic growth , a highly competitive social market economy aiming at full employment and social progress , and a high level of protection and improvement of the quality of the environment;


### 1. highlights that the statutory independence of the ecb is a prerequisite for it to fulfil its mandate; ### 1. highlights that the statutory independence of the ecb , as laid down in the treaties , is a prerequisite for it to fulfil its mandate of maintaining price stability;


### 1. highlights that the statutory independence of the ecb is a prerequisite for it to fulfil its mandate; ### 1. highlights that the statutory independence of the ecb is a prerequisite for it to fulfil its mandate to maintain price stability; notes with great concern the rise of the inflation rate above the 2% target;


### 1. highlights that the statutory independence of the ecb is a prerequisite for it to fulfil its mandate; ### 1. highlights that the statutory independence of the ecb is a prerequisite for it to fulfil its mandate; stresses that this independence must not be infringed on;


### 2. welcomes the ecb monetary policy strategy review adopted unanimously and announced on 8 july 2021 , which sets out how to achieve the primary objective of maintaining price stability and contribute to the achievement of the union’s objectives without prejudice to the objective of price stability; ### 2. welcomes the ecb monetary policy strategy review adopted unanimously and announced on 8 july 2021 , which sets out how to achieve the primary objective of maintaining price stability and contribute to the achievement of the union’s objectives without prejudice to the objective of price stability; welcomes president lagarde’s commitment during the monetary dialogue held on 27 september 2021 to assess the appropriateness of the monetary policy strategy periodically , with the next assessment expected in 2025;


### 2. welcomes the ecb monetary policy strategy review adopted unanimously and announced on 8 july 2021 , which sets out how to achieve the primary objective of maintaining price stability and contribute to the achievement of the union’s objectives without prejudice to the objective of price stability; ### 2. takes note of the ecb monetary policy strategy review adopted unanimously and announced on 8 july 2021 , which sets out how to achieve the primary objective of maintaining price stability and contribute to the achievement of the union’s objectives without prejudice to the objective of price stability;


### 3. is deeply concerned about the unprecedented healthcare , social and economic crisis caused by the covid-19 pandemic , resulting in a sharp contraction of the euro area economy , a sharp increase in economic and social inequalities , and rapidly deteriorating labour market conditions; notes that euro area activity is expected to rebound , although the speed , scale and evenness of the rebound remains highly uncertain; ### deleted


### 3. is deeply concerned about the unprecedented healthcare , social and economic crisis caused by the covid-19 pandemic , resulting in a sharp contraction of the euro area economy , a sharp increase in economic and social inequalities , and rapidly deteriorating labour market conditions; notes that euro area activity is expected to rebound , although the speed , scale and evenness of the rebound remains highly uncertain; ### 3. recalls that the unprecedented healthcare , social and economic crisis caused by the covid-19 pandemic resulted in a sharp contraction of the euro area economy , an increase in economic and social inequalities , and deteriorating labour market conditions; welcomes the extensive public support measures taken in response by national governments and the eu; notes that euro area activity is rebounding , although the speed , scale and evenness of the rebound remains uncertain;


### 4. stresses that sustainable growth , resilience and price stability cannot be achieved by monetary policy alone and that supportive and discretionary fiscal policy and socially balanced and productivity-enhancing reforms and investments are also necessary; acknowledges president lagarde’s call for full alignment of fiscal and monetary policies in tackling the covid-19 crisis; ### 4. stresses that sustainable growth , resilience and price stability cannot be achieved by monetary policy alone and that supportive and discretionary fiscal policy and productivity-enhancing reforms and investments are also necessary; points out that extended ultra-accommodative financing conditions might discourage member states from pursuing productivity-enhancing reforms;


### 5. agrees with the ecb president’s statement of 10 june 2021 that ‘an ambitious and coordinated fiscal stance remains crucial , as a premature withdrawal of fiscal support would risk weakening the recovery and amplifying the longer-term scarring effects’; ### 5. takes note of the ecb president’s statement of 10 june 2021 that ‘an ambitious and coordinated fiscal stance remains crucial , as a premature withdrawal of fiscal support would risk weakening the recovery and amplifying the longer-term scarring effects’;


### 6. underlines the importance of a central fiscal capacity capable of providing a counter-cyclical stabilisation function and timely and adequate support in the event of economic shocks; ### deleted


### 6. underlines the importance of a central fiscal capacity capable of providing a counter-cyclical stabilisation function and timely and adequate support in the event of economic shocks; ### 6. underlines the importance of the recovery and resilience facility (rrf) in addressing the economic shock caused by the covid-19 crisis;


### 7. echoes president lagarde’s call for the revision and simplification of the stability and growth pact to be carried out before the deactivation of the general escape clause; ### deleted


### 8. welcomes the ecb’s substantially eased monetary policy stance in response to the covid-19 crisis , which includes the introduction of the pandemic emergency purchase programme (pepp) , the relaxation of the eligibility and collateral criteria and the offer of new longer-term refinancing operations; welcomes , moreover , the ecb’s decision to maintain instruments , such as forward guidance , asset purchases and longer-term refinancing operations , as an integral part of its toolkit; ### 8. welcomes the ecb’s response to the covid-19 crisis , which includes the introduction of the pandemic emergency purchase programme (pepp) , the relaxation of the eligibility and collateral criteria and the offer of new longer-term refinancing operations; notes , moreover , the ecb’s decision to maintain instruments , such as forward guidance , asset purchases and longer-term refinancing operations , as an integral part of its toolkit;


### 8. welcomes the ecb’s substantially eased monetary policy stance in response to the covid-19 crisis , which includes the introduction of the pandemic emergency purchase programme (pepp) , the relaxation of the eligibility and collateral criteria and the offer of new longer-term refinancing operations; welcomes , moreover , the ecb’s decision to maintain instruments , such as forward guidance , asset purchases and longer-term refinancing operations , as an integral part of its toolkit; ### 8. welcomes the ecb’s substantially eased monetary policy stance in response to the covid-19 crisis , which includes the introduction of the pandemic emergency purchase programme (pepp) , the relaxation of the eligibility and collateral criteria and the offer of new longer-term refinancing operations; welcomes , moreover , the ecb’s decision to maintain instruments , such as forward guidance , asset purchases and longer-term refinancing operations , as an integral part of its toolkit; points out that the ecb's ultra-accommodative monetary policy provides disadvantages for savers and comes with the severe risk of asset price inflation;


### 9. welcomes the ecb’s decision to continue to conduct net asset purchases at a significantly higher pace under the pepp until at least the end of march 2022; ### 9. notes the ecb’s decision to continue to conduct net asset purchases under the pepp until at least the end of march 2022;


### 9. welcomes the ecb’s decision to continue to conduct net asset purchases at a significantly higher pace under the pepp until at least the end of march 2022; ### 9. takes note of the ecb’s decision to continue to conduct net asset purchases at a significantly higher pace under the pepp until at least the end of march 2022;


### 10. welcomes the ecb’s expectation that monthly net asset purchases under the asset purchase programme (app) will continue to run for as long as necessary to reinforce the accommodative impact of its policy rates; ### 10. notes the ecb’s expectation that monthly net asset purchases under the asset purchase programme (app) will continue to be used to reinforce the impact of its policy rates during the accommodative monetary policy stance;


### 10. welcomes the ecb’s expectation that monthly net asset purchases under the asset purchase programme (app) will continue to run for as long as necessary to reinforce the accommodative impact of its policy rates; ### 10. takes note of the ecb’s expectation that monthly net asset purchases under the asset purchase programme (app) will continue to run for as long as necessary to reinforce the accommodative impact of its policy rates;


### 12. notes the ecb’s decision on a new symmetric inflation target of 2 % over the medium term and its commitment to maintain a persistently accommodative monetary policy stance in order to meet its inflation target; notes with concern that inflation rose to a decade-high 3 % in august 2021; calls on the ecb to evaluate and address this upward trend and its consequences more attentively; ### 12. notes the ecb’s decision on a new symmetric inflation target of 2 % over the medium term; notes with concern that inflation rose to a decade-high 3 % in august 2021; calls on the ecb to evaluate and address this upward trend and its consequences more attentively; invites the ecb to reflect whether the surge in inflation might warrant an earlier change in its monetary policy stance;


### 12. notes the ecb’s decision on a new symmetric inflation target of 2 % over the medium term and its commitment to maintain a persistently accommodative monetary policy stance in order to meet its inflation target; notes with concern that inflation rose to a decade-high 3 % in august 2021; calls on the ecb to evaluate and address this upward trend and its consequences more attentively; ### 12. notes the ecb’s decision on a new symmetric inflation target of 2 % over the medium term; notes with concern that inflation rose to a decade-high 3 % in august 2021; calls on the ecb to evaluate and address this upward trend and its consequences more attentively and to , if necessary , take action to prevent market dominance;


### 13. notes the ecb’s decision to include the costs related to owner-occupied housing in the hicp to better represent the inflation rate that is relevant for households; ### 13. welcomes the ecb’s decision to include the costs related to owner-occupied housing in the hicp to better represent the inflation rate that is relevant for households;


### 14. recalls that , as an eu institution , the ecb is bound by the paris agreement and that this should be reflected in its policies; ### deleted


### 14. recalls that , as an eu institution , the ecb is bound by the paris agreement and that this should be reflected in its policies; ### 14. notes , respecting the independence of the ecb , the impact of climate change on inflation dynamics and transmission risks in monetary policy; recalls that , as an eu institution , the ecb is bound by the paris agreement and that this should be reflected in its policies;


### 15. agrees with the ecb that tackling the climate emergency touches not only upon its secondary but also upon its primary mandate , given that climate change and its consequences pose a threat to price stability; ### deleted


### 16. welcomes the ecb’s new action plan and its detailed roadmap of climate change-related actions to further incorporate climate change considerations into its policy framework; ### deleted


### 17. believes that the market neutrality principle falls short of the commitments under the paris agreement and the eu’s objective of achieving climate neutrality by 2050 at the latest; notes that the ecb has already deviated from market neutrality in several instances; ### deleted


### 17. believes that the market neutrality principle falls short of the commitments under the paris agreement and the eu’s objective of achieving climate neutrality by 2050 at the latest; notes that the ecb has already deviated from market neutrality in several instances; ### 17. notes that the treaty stipulates that the ecb should pursue its mandate by favouring an efficient allocation of resources; stresses that if the market misprices the risks associated with climate change , adhering to the market neutrality principle may not be right because it may instead support a market structure that hampers an efficient allocation of resources; notes that the ecb has already deviated from market neutrality in several instances;


### 18. regrets the fact that green bond issuance in the eu represents only 2.6 % of the eu’s total bond issuance; ### deleted


### 19. welcomes the fact that the ecb is taking steps to incorporate climate-related risks into its collateral framework but warns against delays in its implementation; is concerned about the fact that the ecb continues to rely exclusively on private external credit rating agencies (cras) for risk assessment; ### deleted


### 20. underlines the pivotal role of small and medium-sized enterprises (smes) in the eu economy , economic and social convergence and employment; stresses that smes have been severely hit by the economic crisis caused by the covid-19 pandemic , which has led to a serious deterioration in their economic turnover and their access to finance; calls on the ecb to step up its efforts on financing and access to credit for smes; ### 20. underlines the pivotal role of small and medium-sized enterprises (smes) in the eu economy , economic and social convergence and employment; stresses that smes have been severely hit by the economic crisis caused by the covid-19 pandemic , which has led to a serious deterioration in their economic turnover and their access to finance; points out the need to encourage public and private investments in the eu , and calls therefore on the ecb to step up its efforts on financing and access to credit for smes;


### 21. is concerned about the risks caused by the serious delay in completing the third pillar of the banking union; welcomes the ecb’s long-standing support of the establishment of a fully fledged european deposit insurance scheme (edis); ### deleted


### 21. is concerned about the risks caused by the serious delay in completing the third pillar of the banking union; welcomes the ecb’s long-standing support of the establishment of a fully fledged european deposit insurance scheme (edis); ### 21. welcomes the ecb’s long-standing support for the completion of the banking union , including the establishment of an european deposit insurance scheme (edis);


### 22. welcomes the ecb’s decision to launch a 24-month investigation phase of a digital euro project; calls on the ecb to effectively address the expectations and concerns raised during the public consultation on a digital euro; ### 22. welcomes the ecb’s decision to launch a 24-month investigation phase of a digital euro project; calls on the ecb to effectively address the expectations and concerns raised during the public consultation on a digital euro; agrees with the ecb that a digital euro would have to satisfy a range of minimal requirements including robustness , safety , efficiency and protection of privacy; stresses that a potential digital euro can complement , but must not replace cash as a means of payment;


### 22. welcomes the ecb’s decision to launch a 24-month investigation phase of a digital euro project; calls on the ecb to effectively address the expectations and concerns raised during the public consultation on a digital euro; ### 22. welcomes the ecb’s decision to launch a 24-month investigation phase of a digital euro project; calls on the ecb to effectively address the expectations and concerns raised during the public consultation on a digital euro; stresses that a digital euro must not endanger cash as a means of payment for eu citizens;


### 23. welcomes the continuous efforts of the ecb to strengthen its response and recovery capabilities in the event of cyberattacks; ### 23. welcomes the continuous efforts of the ecb to strengthen its response and recovery capabilities in the event of cyberattacks; expresses concerns about the service interruption that affected the target2 system in 2020; calls on the ecb to ensure the enduring stability of sensitive infrastructure such as the target2 system;


### 24. calls on the ecb to step up its monitoring of the development of crypto-currencies and the related risks in terms of cybersecurity and money laundering; ### 24. invites the ecb to monitor the development of crypto markets to inform its own deliberations on the digital euro;


### 24. calls on the ecb to step up its monitoring of the development of crypto-currencies and the related risks in terms of cybersecurity and money laundering; ### 24. calls on the ecb to step up its monitoring of the development of crypto-assets and the related risks in terms of cybersecurity and money laundering to prevent negative effects on the stability , integrity and safety of the financial sector;


### 25. welcomes the substantial and detailed feedback provided by the ecb to parliament’s resolution on the 2019 ecb annual report; ### 25. welcomes the substantial and detailed feedback provided by the ecb to parliament’s resolution on the 2019 ecb annual report; calls on the ecb to continue publishing its written feedback on parliament’s resolution each year;


### b. whereas high flows of royalty , interest or dividend payments through a certain jurisdiction indicate that profits are being rerouted with the sole purpose of reducing the tax burden; ### deleted


### d. whereas withholding taxes can reduce the risk of tax evasion and avoidance , thus remaining a reliable policy tool until the implementation of the above-mentioned agreement by the g20/oecd inclusive framework on beps; ### d. whereas withholding taxes can reduce the risk of tax evasion and avoidance , but increase the risk of double-taxation;


### d. whereas withholding taxes can reduce the risk of tax evasion and avoidance , thus remaining a reliable policy tool until the implementation of the above-mentioned agreement by the g20/oecd inclusive framework on beps; ### d. whereas withholding taxes can reduce the risk of tax evasion and avoidance , but can also lead to the undesirable effect of double taxation , it is necessary to speed up the process of implementing the above-mentioned agreement by the g20/oecd inclusive framework on beps in order thus to eliminate all the problems of this transition process;


### e. whereas complex refund procedures increase the administrative burden for cross-border investments and may create an obstacle to market integration; ### e. whereas complex , lengthy and costly refund procedures increase the administrative burden for cross-border investments and create an obstacle to market integration; whereas such obstacles even remain in the single market constituting a major barrier to the free flow of capital and the completion of the capital markets union; whereas such obstacles are particularly severe for retail investors and might discourage them from cross-border investments;


### 1. notes that despite continuous efforts , the system of withholding taxes in the eu has remained largely fragmented , creating loopholes which could be abused to shift profits and barriers to cross-border investments in the single market; ### 1. notes that despite continuous efforts , the system of withholding taxes between member states has remained largely fragmented , creating loopholes and legal uncertainty which could be abused to shift profits , which could result in the undesired effect of double taxation and barriers to cross-border investments in the single market;


### 2. welcomes the considerable progress made in the fight against harmful tax practices in recent years , both at eu and international level , while stressing that more efforts are needed; ### 2. welcomes the considerable progress made in the fight against harmful tax practices in recent years , both at eu and international level , while stressing that similar efforts are needed to tackle taxation-based obstacles to cross-border investments;


### 3. welcomes the agreement reached by the g20/oecd inclusive framework on a two-pillar reform , including a global minimum effective tax rate; considers this an important step towards ending the practice of shifting profits to low-tax jurisdictions; regrets the fact that the scope is limited to multinational enterprises with a global consolidated turnover of at least eur 750 million; ### 3. welcomes the agreement reached by the g20/oecd inclusive framework on a two-pillar reform , including a global minimum effective tax rate; considers this an important step towards ending the practice of shifting profits to low-tax jurisdictions; notes the fact that the scope is focused on multinational enterprises with a global consolidated turnover of at least eur 750 million;


### 3. welcomes the agreement reached by the g20/oecd inclusive framework on a two-pillar reform , including a global minimum effective tax rate; considers this an important step towards ending the practice of shifting profits to low-tax jurisdictions; regrets the fact that the scope is limited to multinational enterprises with a global consolidated turnover of at least eur 750 million; ### 3. welcomes the agreement reached by the g20/oecd inclusive framework on a two-pillar reform , including a global minimum effective tax rate; considers this an important step to make free tax competition fairer between jurisdictions and to ensure companies pay the taxes due in each jurisdiction; regrets the fact that the scope is limited to multinational enterprises with a global consolidated turnover of at least eur 750 million; considers it also necessary to reflect on the overall maximum effective tax rate;


### 4. is pleased that 136 countries and jurisdictions have supported the g20/oecd inclusive framework agreement on a two-pillar reform; regrets the fact that one member state is not part of the inclusive framework; ### 4. . is pleased that 136 countries and jurisdictions have supported the g20/oecd inclusive framework agreement on a two-pillar reform; welcomes the fact that all g20 members , all oecd members and all eu member states are parties to the agreement;


### 5. regrets the fact that base erosion and profit shifting are still ongoing and are facilitated by the tax regimes of certain member states; recalls that the commission , in the context of the european semester and the assessment of the national recovery and resilience plans , found that more reforms are needed in order to address aggressive tax planning in six member states , where the absence or limited application of withholding taxes on outbound payments are likely to be misused for aggressive tax planning; ### 5. notes that a simple , coherent and fair tax system is a key factor for commercial success and for improving the eu’s competitiveness because tax harmonisation based on widespread tax increases cannot be the only solution; recalls that the commission , in the context of the european semester and the assessment of the national recovery and resilience plans , found that more reforms are needed in order to address aggressive tax planning in six member states , where the absence or limited application of withholding taxes on outbound payments are likely to be misused for aggressive tax planning;


### 5. regrets the fact that base erosion and profit shifting are still ongoing and are facilitated by the tax regimes of certain member states; recalls that the commission , in the context of the european semester and the assessment of the national recovery and resilience plans , found that more reforms are needed in order to address aggressive tax planning in six member states , where the absence or limited application of withholding taxes on outbound payments are likely to be misused for aggressive tax planning; ### 5. regrets the fact that base erosion and profit shifting are still ongoing; recalls that the commission , in the context of the european semester and the assessment of the national recovery and resilience plans , found that more reforms are needed in order to address aggressive tax planning in six member states , where the absence or limited application of withholding taxes on outbound payments are likely to be misused for aggressive tax planning;


### 6. calls on the commission and the member states to set up a harmonised withholding tax framework that ensures that all dividend , interest and royalties payments flowing out the eu are taxed at a minimum effective tax rate; ### 6. takes note of the commission’s announcement of a legislative initiative to introduce a common , standardised system at eu level for the reduction of withholding tax , accompanied by a mechanism for the exchange of information and cooperation between tax administrations; calls on the commission and the member states to negotiate the setting up of a common , standardised system of withholding tax that , while respecting the member states’ freedom to set their own tax systems , ensures that all dividend , interest and royalties payments generated in the eu are taxed at a minimum effective tax rate;


### 7. recalls the proposal by 10 member states to include an effective minimum tax rate for royalties and interest in the context of the ird; urges the council to swiftly resume and conclude the negotiations on the ird and encourages the inclusion of such a measure in the announced directive for the implementation of pillar ii; ### 7. recalls the position of the european parliament on corporation tax :'common system of taxation applicable to interest and royalty payments. european parliament legislative resolution of 11 september 2012 on the proposal for a council directive on a common system of taxation applicable to interest and royalty payments made between associated companies of different member states (recast 2011/0314(cns))' has been blocked in the council since 2012 due to divergent views of member states on the principle of introducing a clause on minimum effective taxation and its scope;


### 8. notes that the lack of an effective minimum tax rate on dividend payments to shareholders has triggered a race to the bottom in this field; calls for the adoption of an effective minimum tax rate for dividend payments to shareholders in the eu , thereby reducing harmful tax competition in this realm; ### deleted


### 8. notes that the lack of an effective minimum tax rate on dividend payments to shareholders has triggered a race to the bottom in this field; calls for the adoption of an effective minimum tax rate for dividend payments to shareholders in the eu , thereby reducing harmful tax competition in this realm; ### 8. notes that the lack of an effective minimum tax rate on dividend payments to shareholders created a space that may have favoured tax avoidance , asks the commission for an analysis and legislative proposal to address this issue thereby reducing harmful tax competition in this realm;


### 10. welcomes the inquiry and final report by the european securities and markets authority into cum-ex , cum-cum and withholding tax reclaim schemes , as requested by parliament; calls on the commission to propose measures to link tax reclaims to the underlying distribution of dividends , or to entrust a single entity with responsibility for collecting the withholding tax and issuing the relevant certificate; ### 10. welcomes the inquiry and final report by the european securities and markets authority into cum-ex , cum-cum and withholding tax reclaim schemes , as requested by parliament; calls on the commission to propose measures to extend coordination in the exchange of mandatory information to capital gains tax and withholding tax (including dividend tax) , in addition to the existing exchange of information on corporation tax;