### 1. notes that the european economy is recovering from the devastating impact of the global pandemic; remains concerned about low growth potential compared to other regions in the post-pandemic recovery; ### 1. notes that the european economy is recovering from the devastating impact of the global pandemic , underlines the crucial importance that the timely policy interventions and unprecedented and ambitious next generation eu recovery package have played and will continue to play in mitigating the impact on the european economy of the devastating global pandemic; remains concerned about low growth potential compared to other regions in the post-pandemic recovery and calls for a continued expansionary fiscal stance for as long as needed to support the recovery from the covid-19 pandemic and drive the transformative changes making the economies greener , more digital and inclusive , while ensuring fiscal sustainability in the medium term; warns against a premature withdrawal of support and agrees with the commission’s recommendation that fiscal policy should remain agile and adjust to the evolving situation as warranted; considers that the fiscal support measures should become more targeted as the recovery progresses; supports policies that are tailored to the stage of the pandemic , the path to the economic recovery and to countries’ individual circumstances;


### 1. notes that the european economy is recovering from the devastating impact of the global pandemic; remains concerned about low growth potential compared to other regions in the post-pandemic recovery; ### 1. notes that the european economy is recovering faster than expected from the devastating impact of the global pandemic; remains concerned about low growth potential compared to other regions in the post-pandemic recovery;


### 3. points out that the roll-out of the recovery and resilience facility (rrf) will help to make eu economies and societies more sustainable , inclusive , resilient and better prepared for the green and digital transitions; notes that the facility , which is the centrepiece of nextgenerationeu , will provide large-scale financial support to member states of up to eur 672.5 billion in grants and loans to finance reforms and investments; ### 3. points out that the roll-out of the temporary recovery and resilience facility (rrf) will help to make eu economies and societies more sustainable , inclusive , resilient and better prepared for the green and digital transitions; notes that the facility , which is the centrepiece of nextgenerationeu , will provide large-scale financial support to member states of up to eur 672.5 billion in grants and loans to finance reforms and investments;


### 4. is pleased that , according to the commission , economic activity in the eu is expected to pick up in all member states , with acceleration as of the second half of 2021 , as containment measures are gradually relaxed and vaccination progresses , reflecting the growth impulse stemming from the implementation of the national recovery and resilience plans; remains concerned , however , that the speed of the recovery will vary across member states and regions; ### 4. is pleased that , according to the commission , economic activity in the eu is expected to pick up in all member states , with acceleration as of the second half of 2021 , as containment measures are gradually relaxed and vaccination progresses , reflecting the growth impulse stemming from the expected implementation of the national recovery and resilience plans; remains concerned , however , that the speed of the recovery will vary across member states and regions;


### 5. notes that the general escape clause of the stability and growth pact will continue to be applied in 2022 and is expected to be deactivated as of 2023; notes , furthermore , that the decision to deactivate the general escape clause should be taken as an overall assessment of the state of the economy based on quantitative criteria , with the level of economic activity in the eu compared to pre-crisis levels as the key quantitative criterion; points out that country-specific situations will continue to be taken into account after the deactivation of the general escape clause; ### 5. notes that the general escape clause of the stability and growth pact will continue to be applied in 2022 and is expected to be deactivated as of 2023; notes , furthermore , that the decision to deactivate the general escape clause should be taken as an overall assessment of the state of the economy based on quantitative criteria , with the level of economic activity in the eu compared to pre-crisis levels as the key quantitative criterion; stresses , however , in this regard , the importance of the evolution of the health , social and economic situations across the eu and the euro area economy; points out that country-specific situations will continue to be taken into account after the deactivation of the general escape clause;


### 6. is concerned that according to the baseline scenario of the commission’s latest debt sustainability monitor , the debt ratio in the euro area is to peak at 104.6 % in 2024 and 2025 , while the debt ratio in the union is to peak at 96.5 % in 2024 , before declining once again; ### 6. is concerned that according to the baseline scenario of the commission’s latest debt sustainability monitor , the debt ratio in the euro area is to peak at 104.6 % in 2024 and 2025 , while the debt ratio in the union is to peak at 96.5 % in 2024; is concerned that these figures are well above the maastricht criteria;


### 6. is concerned that according to the baseline scenario of the commission’s latest debt sustainability monitor , the debt ratio in the euro area is to peak at 104.6 % in 2024 and 2025 , while the debt ratio in the union is to peak at 96.5 % in 2024 , before declining once again; ### 6. takes note , following the exceptional measures taken during the unprecedented circumstances of a global pandemic to ensure financial and economic stability , that according to the baseline scenario of the commission’s latest debt sustainability monitor , the debt ratio in the euro area is to peak at 104.6 % in 2024 and 2025 , while the debt ratio in the union is to peak at 96.5 % in 2024 , before declining once again;


### 8. highlights that fiscal policy should remain agile and adjust to the evolving situation as warranted , and that a premature withdrawal of fiscal support should be avoided; further highlights the expectation that economic activity will gradually normalise in the second half of 2021 and agrees that member states’ fiscal policies should become more differentiated in 2022 , duly taking into account the state of the recovery , fiscal sustainability and the need to reduce economic , social and territorial divergences; ### 8. highlights that fiscal policy should remain agile and adjust to the evolving situation as warranted , and that a premature withdrawal of fiscal support should be avoided; further highlights the expectation that economic activity will gradually normalise in the second half of 2021 and agrees that member states’ fiscal policies should be reduced in 2022 , duly taking into account the state of the recovery , fiscal sustainability and the need to reduce economic , social and territorial divergences;


### 8. highlights that fiscal policy should remain agile and adjust to the evolving situation as warranted , and that a premature withdrawal of fiscal support should be avoided; further highlights the expectation that economic activity will gradually normalise in the second half of 2021 and agrees that member states’ fiscal policies should become more differentiated in 2022 , duly taking into account the state of the recovery , fiscal sustainability and the need to reduce economic , social and territorial divergences; ### 8. highlights that fiscal policy should remain agile and adjust to the evolving situation as warranted; warns against taking back fiscal support too soon as this could permanently damage the european economy; further highlights the expectation that economic activity will gradually normalise in the second half of 2021 and agrees that member states’ fiscal policies should become more differentiated in 2022 , duly taking into account the state of the recovery , fiscal sustainability and the need to reduce economic , social and territorial divergences;


### 9. notes that member states with high debt should use the rrf to finance additional investment to support the recovery , while pursuing a prudent fiscal policy; stresses the importance of the member states using the potential of the rff to support the necessary structural changes and the transformation to more globally competitive , future-proof , agile industries; agrees that the growth of nationally financed current expenditure should be kept under control and be limited for member states with high debt , allowing fiscal measures to maximise support to the recovery without pre-empting future fiscal trajectories and creating a permanent burden on public finances; ### 9. notes that member states with high debt should pursue a prudent fiscal policy; stresses the importance of the member states using the potential of the rff to support the necessary structural changes and the transformation to more globally competitive , future-proof , agile industries; agrees that the growth of nationally financed current expenditure should be kept under control and be limited for member states with high debt , allowing fiscal measures to maximise support to the recovery without creating a permanent burden on public finances;


### 9. notes that member states with high debt should use the rrf to finance additional investment to support the recovery , while pursuing a prudent fiscal policy; stresses the importance of the member states using the potential of the rff to support the necessary structural changes and the transformation to more globally competitive , future-proof , agile industries; agrees that the growth of nationally financed current expenditure should be kept under control and be limited for member states with high debt , allowing fiscal measures to maximise support to the recovery without pre-empting future fiscal trajectories and creating a permanent burden on public finances; ### 9. notes that member states , especially those with higher debt levels , should use all of the rrf´s financial allocation to provide additional investment to support the recovery; stresses the importance of taking full advantage of the rrf´s potential to address critical bottlenecks , support the necessary structural changes and transform into more globally competitive , future-proof , agile economies; agrees that the growth of nationally financed current expenditure should be closely monitored;


### 9. notes that member states with high debt should use the rrf to finance additional investment to support the recovery , while pursuing a prudent fiscal policy; stresses the importance of the member states using the potential of the rff to support the necessary structural changes and the transformation to more globally competitive , future-proof , agile industries; agrees that the growth of nationally financed current expenditure should be kept under control and be limited for member states with high debt , allowing fiscal measures to maximise support to the recovery without pre-empting future fiscal trajectories and creating a permanent burden on public finances; ### 9. notes that member states with high debt should use the rrf to finance additional investment to support the recovery in order to benefit from a lower interest rate , while pursuing a prudent fiscal policy; stresses the importance of the member states using the potential of the rff to support the necessary structural changes and the transformation to more globally competitive , future-proof , agile industries; agrees that the growth of nationally financed current expenditure should be kept under control and be limited for member states with high debt , allowing fiscal measures to maximise support to the recovery without pre-empting future fiscal trajectories and creating a permanent burden on public finances;


### 12. notes that environmental sustainability , productivity , fairness and macroeconomic stability remain the guiding principles of the eu’s economic agenda; stresses , furthermore , that the digital transformation of our societies , businesses and economies is crucial in order to increase europe’s productivity and competitiveness for a robust recovery , in line with the digital decade; ### 12. notes that environmental sustainability , productivity , fairness , mitigation of regional inequalities , convergence of european economies and macroeconomic stability remain the guiding principles of the eu’s economic agenda; stresses , furthermore , that the digital transformation of our societies , businesses and economies is crucial in order to increase europe’s productivity and competitiveness for a robust recovery , in line with the digital decade;


### 12. notes that environmental sustainability , productivity , fairness and macroeconomic stability remain the guiding principles of the eu’s economic agenda; stresses , furthermore , that the digital transformation of our societies , businesses and economies is crucial in order to increase europe’s productivity and competitiveness for a robust recovery , in line with the digital decade; ### 12. notes that environmental sustainability , productivity , fairness , fiscal discipline and macroeconomic stability remain the guiding principles of the eu’s economic agenda; stresses , furthermore , that the digital transformation of our societies , businesses and economies is crucial in order to increase europe’s productivity and competitiveness for a robust recovery , in line with the digital decade;


### 13. highlights that the rrf is an unprecedented opportunity for all member states to address key structural challenges and investment needs , while embracing the green and digital transitions; ### deleted


### 13. highlights that the rrf is an unprecedented opportunity for all member states to address key structural challenges and investment needs , while embracing the green and digital transitions; ### 13. highlights that the rrf is an unprecedented opportunity for all member states to address key structural challenges and investment needs , while embracing the green and digital transitions; reiterates parliament´s calls for the commission to ensure balance between reforms and investments and consistency of the national plans , including new reforms , with existing achievements and challenges identified in the relevant csr1a;


### 13. highlights that the rrf is an unprecedented opportunity for all member states to address key structural challenges and investment needs , while embracing the green and digital transitions; ### 13. highlights that the rrf is an unprecedented and unique opportunity for all member states to address key structural challenges and investment needs , while embracing the green and digital transitions;


### 14. calls for a focus on fiscal structural reforms , including reforms enhancing efficient spending , and acknowledges that high-quality public finance resource management is crucial; ### 14. calls for a focus on fiscal structural reforms , including reforms enhancing efficient spending , and acknowledges that high-quality public finance resource management is crucial; asks the commission to thoroughly assess the arrangements proposed by the member states to prevent , detect and correct corruption , fraud and conflicts of interest when using the funds provided under the rrf and to give a particular attention in this context that the national plans include all necessary reforms , together with relevant milestones and targets , in particular related to the relevant csrs , where appropriate; urges the commission to monitor very carefully the risks to eu financial interests in the implementation of the rrf of any breach or potential breach of the principles of the rule of law , with a detailed and in particular attention to public procurement; expects the commission not to proceed with any payments under the rrf if milestones linked to measures to prevent , detect and correct corruption , fraud and conflicts of interest when using the funds provided under the rff are not met5a;


### 14. calls for a focus on fiscal structural reforms , including reforms enhancing efficient spending , and acknowledges that high-quality public finance resource management is crucial; ### 14. calls for a focus on fiscal structural reforms , including reforms enhancing efficient spending , and acknowledges that high-quality , efficient and digital public finance resource management is crucial;


### 15. welcomes the fact that the updated new european industrial strategy , the european digital strategy and all the other relevant strategies set out the framework for speeding up europe’s recovery and transition towards a cleaner , more digital , and more resilient economic and industrial model , as well as for building a stronger and more resilient single market; ### 15. welcomes the commission´s intentions to speed up europe’s recovery and transition towards a cleaner , more digital , and more resilient economic and industrial model , as well as for building a stronger and more resilient single market;


### 16. highlights that tackling structural challenges is crucial for a sustainable recovery and continued growth , and that implementing reforms to address structural vulnerabilities is key not only to improving the ability to withstand and cope with existing challenges but also to accomplishing the twin transitions in a sustainable and fair manner; ### 16. highlights that tackling structural challenges is crucial for a sustainable recovery and continued growth , and that implementing reforms to address structural vulnerabilities is key not only to improving the ability to withstand and cope with existing challenges but also to accomplishing the twin transitions in a sustainable and fair manner; insists that all reforms and investments must be linked to milestones , targets and costing that are relevant , clear , detailed and adequately monitored , and in particular that ensure full compliance with the rrf regulation and the eu acquis , representing clear commitments from member states2a; is concerned about the fact that many national recovery and resilience plans focus on short-term investments3a; insists that the commission devote particular attention to ensuring that the proposed reforms are genuine , new and more ambitious , starting as soon as possible4a;


### 17. is concerned that the commission identified macroeconomic vulnerabilities related to imbalances and excessive imbalances in 12 member states; is particularly worried that the nature and source of member states’ imbalances remain largely the same as prior to the pandemic; calls on the member states to take advantage of the unprecedented opportunity provided by the rrf to significantly reduce existing macroeconomic imbalances; ### 17. is concerned that the commission identified macroeconomic vulnerabilities related to imbalances and excessive imbalances in 12 member states; calls on the member states to take advantage of the unprecedented opportunity provided by the rrf to significantly reduce existing macroeconomic imbalances , in particular by including ambitious reform measures in the national plans of all member states; stresses that sound execution is essential to make full use of this opportunity;


### 17. is concerned that the commission identified macroeconomic vulnerabilities related to imbalances and excessive imbalances in 12 member states; is particularly worried that the nature and source of member states’ imbalances remain largely the same as prior to the pandemic; calls on the member states to take advantage of the unprecedented opportunity provided by the rrf to significantly reduce existing macroeconomic imbalances; ### 17. is concerned that the commission identified macroeconomic vulnerabilities related to imbalances and excessive imbalances in 12 member states; is particularly worried that the nature and source of member states’ imbalances remain largely the same as prior to the pandemic; calls on the member states to take advantage of the unique opportunity provided by the rrf to significantly reduce existing macroeconomic imbalances;


### 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. notes that csrs for 2021 were issued in an omnibus report due to the exceptional circumstances linked to the pandemic; notes that targeted and tailor made csrs in 2022 could focus on commitments related to the rrf as well as areas not covered by the scope of the rrf;


### 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. notes that the omnibus report on csrs for 2021 promote medium-term fiscal sustainability , ensuring that member states do not endanger fiscal sustainability in the medium term;


### 2. notes that simplifying vat with the introduction of a single rate and revenue neutrality could reduce the standard rate in the eu by an average of 7% , thus bringing the standard rate down from 13% to 2%; ### 2. notes that simplifying vat with the introduction of a single rate and revenue neutrality could reduce the standard rate in the eu-27 by an average of 7 percentage points , thus the potential vat rate deduction ranges from 13 percentage points (el) to 2 pourcentage points (ee);


### 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 often a rather inefficient instrument to achieve 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;


### 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 and modernized vat system with limits on exemptions and non-standard rates to be introduced with a view to promoting competitiveness;


### 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; welcomes transaction network analysis (tna) and supports the establishment of enhanced cooperation between eurofisc members in order to rapidly detect carousel-type fraud; calls on the conference on the future of europe to address this issue in the context of the protection of the eu's financial interests;


### 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; urges the council to adopt as soon as possible the proposal for a directive of 25 may 2018 , given the extent of the loss of national and european budgetary resources under the current regime; in the absence of unanimity within the council , invites the commission to propose the use of the enhanced cooperation procedure by member states wishing to move forward;


### 1. welcomes the entry of bulgaria and croatia into the banking union; ### 1. welcomes the entry of bulgaria and croatia into the exchange rate mechanism (erm ii) and therefore into the banking union , and stresses that participation in these schemes is inextricably linked up with prudent financial policy;


### 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;


### 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 pending;


### 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 , with certain exemptions , 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;


### f. whereas prudential and anti-money laundering supervision is necessary; ### f. whereas prudential supervision is necessary and the fight against fraud and anti-money laundering should be a priority;


### 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 proportional , more efficient and more coherent , and should contribute to financial stability , the end of implicit guarantees and the protection of taxpayers;


### a. whereas the unprecedented impact and magnitude of the covid-19 crisis on the economy has led to a decrease in tax revenues and an increase in fiscal expenditures to protect society and the economy , and is leading to a sharp increase in government debt; whereas tax fraud and tax evasion undermines government revenues , as well as the sustainability of public finances and taxation systems; whereas it is paramount to keep taxes low to support the growth of the economy; ### a. whereas the unprecedented impact and magnitude of the covid-19 crisis on the economy has led to a decrease in tax revenues and an increase in debt and fiscal expenditures to protect society and the economy , and is leading to a sharp increase in government debt; whereas tax fraud and tax evasion undermines government revenues , as well as the sustainability and digitalisation of public finances and taxation systems; whereas it is paramount to focus on the economic and social recovery of the union and to support jobs and growth while discouraging increase in tax;


### b. whereas a swift recovery requires a strong economic and fiscal policy response ensuring , inter alia: (i) an effective level playing field for businesses , including less red tape to promote both domestic trade and trade within the single market , supported by a simple and more predictable tax environment; (ii) securing tax revenues for member states to finance the recovery and reduce debt to gdp and (iii) fair taxation of businesses and citizens , enhancing both trust in society and fair competition; ### b. whereas a swift recovery requires a strong economic and fiscal policy response through reforms and investments ensuring , inter alia: (i) an effective level playing field for businesses , including less red tape to promote competition , as well as both domestic trade and trade within the single market , supported by a simple , digital and more predictable tax environment; (ii) securing tax revenues for member states to finance the recovery and reduce debt to gdp and (iii) fair taxation of businesses and citizens , enhancing transparency and both trust in society and fair competition through coordinated and digitalised reporting systems;


### d. whereas there is a need to build more mutual trust and cooperation between the tax authorities of the member states and share best practices across the member states; ### d. whereas there is a need to build more mutual trust and cooperation between the tax authorities of the member states and share best practices across the member states in view of consolidating and harmonising national reporting systems;


### 1. welcomes the commission's action plan and supports its thorough implementation; observes that the majority of the 25 actions are related to vat , which is appropriate due to the high level of revenue losses in the area of vat; considers however that an impact assessment should be carried out , before presenting concrete legislative proposals to better apprehend the potential effects on taxpayers and businesses; ### 1. welcomes the commission's action plan and supports its thorough implementation; observes that the majority of the 25 actions are related to vat , which is appropriate due to the high level of revenue losses in the area of vat; considers however that an impact assessment should be carried out to complement concrete legislative proposals to better apprehend the potential effects on taxpayers and businesses;


### 2. believes that the commission’s decision to carry out initiatives aimed at enhancing cooperation among tax authorities and increased harmonisation of procedural rules across the single market is of the highest importance; welcomes the commission’s initiative for the ‘eu cooperative compliance programme’; ### 2. believes that the commission’s decision to carry out initiatives aimed at enhancing cooperation among tax authorities and increased harmonisation of procedural rules across the single market is of the highest importance; welcomes the commission’s initiative for the ‘eu cooperative compliance programme’ as a method of closer cooperation between tax authorities and business and recommends clear eligibility and functioning rules , as well as a potential expansion of the programme towards vat-related issues;


### 2. believes that the commission’s decision to carry out initiatives aimed at enhancing cooperation among tax authorities and increased harmonisation of procedural rules across the single market is of the highest importance; welcomes the commission’s initiative for the ‘eu cooperative compliance programme’; ### 2. believes that the commission’s decision to carry out initiatives aimed at enhancing cooperation among tax authorities and increased coordination of procedural rules across the single market is of the highest importance; welcomes the commission’s initiative for the ‘eu cooperative compliance programme’;


### 3. welcomes the commission's proposal to modernise , simplify and harmonise vat requirements , using transaction-based 'real time' reporting and e-invoicing; notes that such reporting needs to be taxpayer-friendly while allowing tax administrations to have an overview of the various transactions in real-time , facilitating the prevention and detection of fraud and risky economic operators; considers that reporting requirements and tax forms should converge across the member states; believes that the use of the data-mining tool transaction network analysis (tna) represents an available way to reduce tax fraud and promotes its further development and sharing of best practices among member states; ### 3. welcomes the commission's proposal to modernise , simplify and harmonise vat requirements , using transaction-based 'real time' reporting and e-invoicing; notes that such reporting needs to be taxpayer-friendly while allowing tax administrations to have an overview of the various transactions in real-time , facilitating the prevention and detection of fraud and risky economic operators; considers that reporting requirements and tax forms should converge across the member states; believes that the use of the data-mining tool transaction network analysis (tna) represents one of the available options to reduce tax fraud and promotes its further development and sharing of best practices among member states;


### 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 that data should aim to simplify various obligations of taxpayers , in particular in the area of vat returns and recapitulative statements , while artificial intelligence (ai) and various softwares should be used to maximise the effectiveness of the use of data;


### 6. recalls that tax transparency and certainty based on clear respective rights and duties is the main principle on which to build mutual trust between taxpayers; supports , in that context , the formalisation of the charter on taxpayer’s rights; believes that further development and the identification of gaps in effective european dispute resolution mechanism need to be considered; ### 6. recalls that tax transparency and certainty based on clear respective rights and duties is the main principle on which to build mutual trust between taxpayers; supports , in that context , the formalisation of the charter on taxpayer’s rights , more consistency on tax residence rules for individuals and an increased exchange of information; believes that further development and the identification of gaps in effective european dispute resolution mechanism need to be considered;


### 7. notes that the union decision-making process is not promoting change , as tax policy is a national prerogative and subject to unanimity; regrets that the current situation sometimes leads to an uneven or inconsistent application of tax regulations; calls on the commission and the member states to ensure more harmonised and consistent tax rules and their implementation , to protect the functioning of the single market and to assure the principle of “taxing where profit is generated”; ### 7. notes that the union decision-making process is not promoting change , as tax policy is a national prerogative and subject to unanimity; regrets that the current situation sometimes leads to an uneven or inconsistent application of tax regulations and to a delay in harmonisation of tax practices across the union; calls on the commission and the member states to ensure more harmonised and consistent tax rules and their implementation , to protect the functioning of the single market and to assure the principle of “taxing where profit is generated”;


### 7. notes that the union decision-making process is not promoting change , as tax policy is a national prerogative and subject to unanimity; regrets that the current situation sometimes leads to an uneven or inconsistent application of tax regulations; calls on the commission and the member states to ensure more harmonised and consistent tax rules and their implementation , to protect the functioning of the single market and to assure the principle of “taxing where profit is generated”; ### 7. notes that tax policy is a national prerogative and subject to unanimity; regrets that the current situation sometimes leads to an uneven or inconsistent application of tax regulations; calls on the commission and the member states to ensure more consistent tax rules and their implementation , to protect the functioning of the single market and to assure the principle of “taxing where profit is generated”;


### 8. takes note of the existing limits on decision making in the council and calls for exploring all legal options as provided in the treaties on taxation especially in order to ensure functionality of the single market and preserve union competitiveness in the global market; ### 8. takes note of the existing limits on decision making in the council and calls for exploring all legal options as provided in the treaties on taxation , in particular the transition towards qualified majority voting , in order to ensure functionality of the single market and preserve union competitiveness in the global market; calls on the conference on the future of europe to further explore the decision-making process of the taxation policies , in the context of the protection of the union's financial interests;


### 8. takes note of the existing limits on decision making in the council and calls for exploring all legal options as provided in the treaties on taxation especially in order to ensure functionality of the single market and preserve union competitiveness in the global market; ### 8. takes note of the existing decision making on taxation matters in the council.


### 9. observes that the current eu vat system remains too complex and vulnerable to fraud , while generating high compliance costs for economic operators8 ; notes that the different measures to tackle tax fraud are adopted in the member states; recalls that the modernisation of the vat system and the shift towards a more coherent vat system across the union should be addressed urgently9 ; ### 9. observes that the current eu vat system remains too complex and vulnerable to fraud , while generating high compliance costs for economic operators8 ; notes that the different measures to tackle tax fraud are adopted in the member states; recalls that the union's network of anti-fraud experts , eurofisc , must , in order to be effective , be strengthened and provided with sufficient resources to carry out joint risk analyses , coordinate investigations and cooperate with the european anti-fraud office (olaf) , europol and the european public prosecutor's office , in particular with a view to investigating vat fraud; welcomes transaction network analysis (tna) and supports the establishment of enhanced cooperation between eurofisc members in order to rapidly detect carousel-type fraud;


### 10. stresses that tackling the vat gap and tax fraud should be an urgent priority for the union and the member states in the post-covid-19 economy; expresses its concern about the level of the vat gap estimated at around eur 140 billion in 2018 , whereof eur 50 billion is related to cross-border tax evasion and fraud; notes with concern that according to the commission’s assessment , the vat gap could rise to more than eur 160 billion due to covid-19; ### 10. stresses that tackling the vat gap and tax fraud should be an urgent priority for the union and the member states in the post-covid-19 economy; expresses its concern about the level of the vat gap estimated at around eur 140 billion in 2018 , whereof eur 50 billion is related to cross-border tax evasion and fraud; notes with concern that according to the commission’s assessment , the vat gap could rise to more than eur 160 billion due to covid-19; notes that the complex composition of the vat gap requires multiple actions , tailored to the specific parts of the drivers behind the gap;


### 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; considers that the multilateral agreement reached at the 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);


### 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; notes the implementation of the 2019 anti-tax avoidance directive and requests the need for an evaluation report by the commission on its impact and implementation; 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;


### 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 historic two-pillar agreement reached at the oecd/g20 inclusive framework 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 agreement requires all participants “to remove digital services taxes and other relevant similar measures (..) and to commit to not introducing such measures in the future”; notes the need for effective implementation of the two-pillar solution with the aim of ensuring a fairer distribution of profits and taxing rights among countries with respect to the largest and most profitable multinational companies; 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; calls on the council to swiftly adopt such proposals to have the agreeement effective in 2023;


### 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 , namely on pillar ii , into union law as quickly as possible after the finalisation of the technical work on the oecd approach;


### 16. supports the rationale of the befit , with the view to design a new and single union corporate tax rulebook , based on a formulary apportionment and a common tax base of income taxation for businesses , which will be providing clarity and predictability for companies , reflecting the consensus reached in the oecd pillar 1 and pillar 2 negotiations; ### 16. supports the rationale of the european commission’s proposal on befit expected in 2023 , with the view to design a new and single union corporate tax rulebook , based on a formulary apportionment and a common tax base of income taxation for businesses , which will be providing clarity and predictability for companies , reflecting the consensus reached in the oecd pillar 1 and pillar 2 negotiations;


### the european parliament calls on the european commission to bring forward initiatives to ensure a more consistent determination of tax residency within the single market by 2022. ### the european parliament calls on the european commission to analyse the extent of the problem and if necessary to bring forward initiatives to ensure a more consistent determination of tax residency within the single market by 2022.


### — 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 , 125 , 127(1) and (2) , 130 and 284(3) of the treaty on the functioning of the european union (tfeu) ,


### 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 , it was publicly discussed on how the ecb may contribute to the achievement of the objectives of the union as laid down in article 3 teu , price stability stays the main objective of the ecb; together with its political neutrality and statutory independence , a maintained price stability will also positively affect 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 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;


### 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; ### 3. is deeply concerned about the unprecedented healthcare , social and economic crisis caused by the covid-19 pandemic , having negative repercussions on the euro area economy , especially in countries that have been vulnerable before; emphasises in this context the importance of fiscal discipline and economic conditionality to prevent or at least mitigate economic crises as a predictable consequence of natural crises; notes that euro area activity is expected to rebound , what can be accelerated by triggering smart investments and implementing outstanding reforms;


### 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. 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; is especially concerned about the effect that the covid-19 pandemic had on smes; notes that euro area activity is expected to rebound , although the speed , scale and evenness of the rebound remains highly 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;


### 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. acknowledges president lagarde’s call for full alignment of fiscal and monetary policies in tackling the covid-19 crisis while emphasising the ecb's neutrality when it comes to political decisions activating productivity-enhancing reforms and investments;


### 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’; but also reminds that long-term fiscal support is not replacing long-term reforms aiming at investments reviving our european economy and making europe a front runner in international competition;


### 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 a stability-oriented fiscal capacity that can provide a counter-cyclical stabilisation function and facilitates timely and adequate support in the event of economic shocks;


### 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


### 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; ### 7. acknowledges president lagarde’s call for the revision and simplification of the stability and growth pact; in which ideally the disbursement of cohesion funds should be linked to compliance with the fiscal pact by the respective member state and which , following an excessive deficit procedure , should provide for automatic sanctions against member states , sanctions that cannot be politically undermined;


### 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; recommends that a close watch be kept on rising inflation and , therefore , that unconventional monetary policy measures be scaled back;


### 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. takes note of 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) , reminds of the controversy of asset purchase programmes and the need for the ecb to provide detailed proof of the proportionality and the impact assessment of longer-term refinancing operations , as an integral part of its responsibility towards national parlaments;


### 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; ### deleted


### 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 at a significantly higher pace under the pepp until at least the end of march 2022; questions , however , whether this is necessary from a monetary policy perspective in times of significantly rising inflation;


### 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 run for as long as necessary to reinforce the accommodative impact of its policy rates; notes , however , that the need for the app when the inflation rate is above target is questionable;


### 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. welcomes 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 3.4 % in september 2021 , ranging from 0.6 % to 6.4 % in the different member states; calls on the ecb to evaluate and address this upward trend and its consequences very attentively;


### 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 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 resolutely address this upward trend and its consequences more attentively;


### 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; ### 14. takes note of the ecb's statement 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;


### 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; ### 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; notes that the results of the ecb first climate stress test indicate that without strong measures , the eugdp could be 10% lower in 2100 than it would be with an orderly planned scenario for the green transition; therefore welcomes that the ecb will conduct regular climate stress-tests both at economy-wide and individual banks levels;


### 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; ### 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 , its consequences and the political measures to combat climate change pose a threat to price stability;


### 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; ### 15. recalls in this context that as being one of the eu institutions , the ecb's main task is to maintain price stability that will create the right conditions and the foundation for politics and a policy also implementing the paris agreement;


### 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; ### 16. takes note of 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;


### 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. believes that the market neutrality principle must be maintained also and especially under the paris agreement and the eu’s objective of achieving climate neutrality by 2050;


### 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. believes that the market neutrality principle is pivotal , as the ecb is not subject to the same democratic oversight as parliaments and governments and must therefore remain as apolitical as possible;


### 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; ### 19. welcomes the fact that the ecb is taking steps to incorporate climate-related risks into its collateral framework;


### 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; ### 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 and recommends the ecb also aligns its collateral framework with the paris agreement and eu objectives; is concerned about the fact that the ecb continues to rely exclusively on private external credit rating agencies (cras) for risk assessment;


### 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. acknowledges existing concerns 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) but only after risk reduction has taken place; calls on the commission to duly take into account the role of institutional protection schemes in protecting and stabilising member institutions first;


### 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; insists that this digital euro must not replace cash as means of payment;


### 29. reiterates that the nominations of the executive board members should be prepared carefully and take a gender-balanced approach , with full transparency and together with parliament , in line with the treaties; ### 29. regrets with strong concerns that only 2 of the 25 members of the ecb's governing council are women , despite repeated calls from the european parliament , and from senior figures in the ecb including its president christine lagarde , to improve gender balance in eu economic and monetary affairs nominations;


### e. whereas complex refund procedures increase the administrative burden for cross-border investments and may create an obstacle to market integration; ### e. whereas complex refund procedures increase the administrative burden for cross-border investments , particularly sme and individual investors , and may create an obstacle to market integration and the advancement of the capital markets union;


### g. whereas the cum-ex and cum-cum schemes both involve reclaims of dividend withholding tax to which the beneficiaries were not entitled and are estimated to have imposed a total cost to taxpayers of about eur 55 billion between 2001 and 2012 in the 11 member states concerned; ### g. whereas the cum-ex and cum-cum schemes both involve reclaims of dividend withholding tax to which the beneficiaries were not entitled and have been ruled illegal; together the schemes are estimated to have imposed a total cost to taxpayers of about eur 55 billion between 2001 and 2012 in the 11 member states concerned;


### 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 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; 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; calls on the commission , as soon as the oecd has developed its model rules , to publish the legislative proposals to implement the international agreement into eu law; calls on the council to swiftly adopt such proposals to have it effective in 2023;


### 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; calls on the commission to bring forward a proposal to implement the international agreement in eu law that respects the spirit of the agreement and not to go beyond what has been agreed so as to preserve the competitiveness of the union;


### 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; notes the fact that one member state is not part of the inclusive framework;


### 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. calls on the commission and the member states to set up a coordinated 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. 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. calls on the commission and the member states to set up a harmonised withholding tax framework that will reduce the complexity for investors and stem the practice of "treaty-shopping"; the commission may consider mesures such as the standardisation of the reclaims procedure or the introduction of a minimum effective tax rate on all dividend , interest and royalties payments flowing out the eu;


### 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 proposal by 10 member states to include an effective minimum tax rate for royalties and interest in the context of the ird; has been a contributing factor to the stalling of negotiations on the reform of the directive; urges the council to swiftly resume and conclude the negotiations on the ird;


### 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


### 11. calls on the commission to enhance cooperation and mutual assistance between tax authorities , financial market supervisory authorities and , where appropriate , law enforcement bodies regarding the detection and prosecution of withholding tax reclaim schemes; ### 11. calls on the commission to enhance cooperation and mutual assistance between tax authorities , financial market supervisory authorities and , where appropriate , law enforcement bodies regarding the detection and prosecution of withholding tax reclaim schemes; takes note in this regard of esma's recommendation to the commission to remove the legal limitations to the exchange of information between these authorities1a; shares esma's concern that withholding tax reclaim schemes are rarely confined to eu borders1b and therefore stresses the importance of continued international cooperation on this matter;


### 13. recalls that directive (eu) 2018/822 introduced an obligation on intermediaries to report potentially harmful tax arrangements; calls on the commission to evaluate to what extent these rules have contributed to revealing harmful tax arrangements such as cum-cum and cum-ex schemes and to what extent they have had a deterrent effect; ### 13. recalls that directive (eu) 2018/822 introduced an obligation on intermediaries to report potentially harmful tax arrangements; calls on the commission to evaluate to what extent these rules have contributed to revealing harmful tax arrangements such as cum-cum and cum-ex schemes and to what extent they have had a deterrent effect like destroying secrecy inherent to exercising respective professions such as tax accountants and lawyers;


### 14. notes the commission’s intention to put forward a proposal by the end of 2022 establishing a european withholding tax framework for dividend , interest or royalty payments , accompanied by a mechanism for the exchange of information and cooperation among tax administrations; ### 14. strongly welcomes the commission’s intention to put forward a proposal by the end of 2022 establishing a european withholding tax framework for dividend , interest or royalty payments , accompanied by a mechanism for the exchange of information and cooperation among tax administrations;


### 15. encourages the development of a harmonised eu procedure for withholding tax refunds for all member states , thereby addressing the concerns about regulatory discrepancies; ### 15. encourages the development of a harmonised eu procedure for withholding tax refunds for all member states , thereby addressing the concerns about regulatory discrepancies; calls on the commission to consider , as part of this harmonisation , inter alia , the introduction of a standardised format and process for reclaim requests , the lack of a uniform definition of "beneficial owner" , the alignment of the time periods for request and reclaim , and language barriers;


### 16. notes that digitalising these procedures and improving cooperation between national tax administrations could reduce the administrative burden and uncertainty in cross-border investments; ### 16. notes that digitalising these procedures and improving cooperation between national tax administrations could reduce the administrative burden and uncertainty in cross-border investments including also cross border donations in the framework of philanthropy;


### 16. notes that digitalising these procedures and improving cooperation between national tax administrations could reduce the administrative burden and uncertainty in cross-border investments; ### 16. notes that digitalising these procedures and improving cooperation between national tax administrations could reduce the administrative burden and uncertainty in cross-border investments in the short-term; in the mid- to long-term , calls the commission to consider the possibility of developing and introducing a fully integrated , centralised and automated system to allow a seamless , and fraud-proof system for relief at source; calls on the commission , in this regard , to take account of existing digital solutions in member states and the potential benefits of using distributed ledger technology (dlt) as the foundations of such a system , and to consider the establishment of a pilot project;


### 2. at its request , a csd operating a dlt securities settlement system may be exempted by the competent authority from the application of article 2(4) on dematerialised form , article 2(9) on transfer of orders , article 2(28) on securities accounts , article 3 on the recording of securities , article 37 on the integrity of issue , article 38 on the segregation of assets of regulation (eu) no 909/2014 , provided that the csd operating the dlt securities settlement system: ### 2. at its request , an entity operating a dlt securities settlement system may be exempted by the competent authority from the application of article 2(4) on dematerialised form , article 2(9) on transfer of orders , article 2(28) on securities accounts , article 3 on the recording of securities , article 37 on the integrity of issue , article 38 on the segregation of assets of regulation (eu) no 909/2014 , provided that the entity operating the dlt securities settlement system:


### 3. at its request , a csd operating a dlt securities settlement system may be exempted by the competent authority from the application of article 19 and article 30 of regulation (eu) no 909/2014 , provided that: ### 3. at its request , an entity operating a dlt securities settlement system may be exempted by the competent authority from the application of article 19 and article 30 of regulation (eu) no 909/2014 , provided that:


### such provisions are incompatible with the use of a dlt as envisaged by the particular dlt operated by the csd concerned; and ### such provisions are incompatible with the use of a dlt as envisaged by the particular dlt operated by the entity concerned; and


### the csd operating the dlt securities settlement system ensures that the conditions set out in points (c) to (i) of article 30(1) and in article 30(2) of regulation (eu) no 909/2014 are complied with. ### the entity operating the dlt securities settlement system ensures that the conditions set out in points (c) to (i) of article 30(1) and in article 30(2) of regulation (eu) no 909/2014 are complied with.


### 4. at its request , a csd operating a dlt securities settlement system may be exempted by the competent authority from the application of article 2(19) of regulation (eu) no 909/2014 on participants and may be permitted to admit as participants natural and legal persons other than those referred to in article 2(19) , provided that such persons: ### 4. at its request , an entity operating a dlt securities settlement system may be exempted by the competent authority from the application of article 2(19) of regulation (eu) no 909/2014 on participants and may be permitted to admit as participants natural and legal persons other than those referred to in article 2(19) , provided that such persons:


### 5. at its request , a csd operating a dlt securities settlement system may be exempted by the competent authority from the application of article 40 of regulation (eu) no 909/2014 on cash settlement , provided that the csd ensures delivery versus payment. ### 5. at its request , an entity operating a dlt securities settlement system may be exempted by the competent authority from the application of article 40 of regulation (eu) no 909/2014 on cash settlement , provided that the entity ensures delivery versus payment.


### where settlement occurs through commercial bank money or e-money tokens , the investment firm or market operator operating the dlt mtf shall identify , measure , monitor , manage , and minimise any counterparty risk arising from the use of such money. ### where settlement occurs through commercial bank money or e-money tokens , the investment entity operating the dlt mtf shall identify , measure , monitor , manage , and minimise any counterparty risk arising from the use of such money.


### 6. at its request , a csd operating a dlt securities settlement system may be exempted by the competent authority from the application of articles 50 and/or article 53 on standard link access and access between a csd and another market infrastructure of regulation (eu) no 909/2014 , provided that it demonstrates that the use of a dlt is incompatible with legacy systems of other csds or other market infrastructures or that granting such access to another csd or another market infrastructure using legacy systems would trigger disproportionate costs , given the size of the dlt securities settlement system. ### 6. at its request , an entity operating a dlt securities settlement system may be exempted by the competent authority from the application of articles 50 and/or article 53 on standard link access and access between a csd and another market infrastructure of regulation (eu) no 909/2014 , provided that it demonstrates that the use of a dlt is incompatible with legacy systems of other csds or other market infrastructures or that granting such access to another csd or another market infrastructure using legacy systems would trigger disproportionate costs , given the size of the dlt securities settlement system.


### 7. where a csd operating a dlt securities settlement system has requested an exemption in accordance with the first sub-paragraph , it shall give access to other csds operating a dlt securities settlement system or to dlt mtfs. ### 7. where an entity operating a dlt securities settlement system has requested an exemption in accordance with the first sub-paragraph , it shall give access to other entities operating a dlt securities settlement system or to dlt mtfs.


### where a csd operating a dlt securities settlement system requests an exemption in accordance with paragraphs 2 to 6 , it shall in any case demonstrate that: ### where an entity operating a dlt securities settlement system requests an exemption in accordance with paragraphs 2 to 6 , it shall in any case demonstrate that:


### the exemption requested is limited to the dlt securities settlement system and does not extend to any other securities settlement system as defined in article 2(10) of regulation (eu) no 909/2014 operated by the same csd. ### the exemption requested is limited to the dlt securities settlement system and does not extend to any other securities settlement system as defined in article 2(10) of regulation (eu) no 909/2014 operated by the same entity.


### 8. where a csd has requested and been granted an exemption under paragraph 3 , the requirement in article 39(1) of regulation (eu) no 909/2014/eu for member states to designate and notify the securities settlement system operated by the csd in accordance with directive 98/26/ec shall not apply to the dlt securities settlement system. the foregoing shall not preclude member states from designating and notifying a dlt securities settlement system in accordance with directive 98/26/ec where the dlt securities settlement system fulfils all of the requirements of that directive. ### 8. where an entity has requested and been granted an exemption under paragraph 3 , the requirement in article 39(1) of regulation (eu) no 909/2014/eu for member states to designate and notify the securities settlement system operated by the entity in accordance with directive 98/26/ec shall not apply to the dlt securities settlement system. the foregoing shall not preclude member states from designating and notifying a dlt securities settlement system in accordance with directive 98/26/ec where the dlt securities settlement system fulfils all of the requirements of that directive.


### 2. a csd operating a dlt securities settlement system , and an investment firm or a market operator operating a dlt mtf requesting an exemption from article 3(2) of regulation (eu) no 909/2014 , shall establish rules on the functioning of the dlt they operate , including the rules for accessing the distributed ledger technology , the participation of the validating nodes , addressing potential conflicts of interest , and risk management including any mitigation measures. ### 2. where they use a proprietary dlt , an entity operating a dlt securities settlement system , and an entity operating a dlt mtf requesting an exemption from article 3(2) of regulation (eu) no 909/2014 , shall establish rules on the functioning of the dlt they operate , including the rules for accessing the distributed ledger technology , the participation of the validating nodes , addressing potential conflicts of interest , and risk management including any mitigation measures.


### 1. a legal person authorised either as an investment firm or to operate a regulated market , under directive 2014/65/eu , may apply for a specific permission to operate a dlt mtf under this regulation. ### deleted


### within three months of receipt of the notification , esma shall provide the competent authority with a non-binding opinion on the application and shall make any recommendations on the exemptions requested by the applicant , that are necessary to ensure investor protection , market integrity and financial stability. esma shall also promote the consistency and proportionality of exemptions granted by competent authorities to investment firms or market operators operating dlt mtfs across the union. in order to do so , esma , shall consult the competent authorities of the other member states in a timely manner and take the utmost account of their views in its opinion. ### within three months of receipt of the notification , esma shall provide the competent authority with a non-binding opinion on the application and shall make any recommendations on the exemptions requested by the applicant , that are necessary to ensure investor protection , market integrity and financial stability. esma shall also promote the consistency and proportionality of exemptions granted by competent authorities to entities operating dlt mtfs across the union. in order to do so , esma , shall consult the competent authorities of the other member states in a timely manner and take the utmost account of their views in its opinion.


### 5. the specific permission granted to either an investment firm or a market operator to operate a dlt mtf shall be valid throughout the union for up to six years from the date of the specific permission. it shall specify the exemptions that are granted , in accordance with article 4. ### 5. the specific permission granted to an entity to operate a dlt mtf shall be valid throughout the union for up to six years from the date of the specific permission. it shall specify the exemptions that are granted , in accordance with article 4.


### the investment firm or market operator operating the dlt mtf has breached the conditions attached to the exemptions granted by the competent authority; ### the entity operating the dlt mtf has breached the conditions attached to the exemptions granted by the competent authority;


### the investment firm or market operator , operating a dlt mtf has admitted to trading financial instruments that do not fulfil the conditions laid down in article 3(1) and 3(2); ### the entity operating a dlt mtf has admitted to trading financial instruments that do not fulfil the conditions laid down in article 3(1) and 3(2);


### the investment firm or market operator , operating a dlt mtf , that has requested an exemption from article 3(2) of regulation (eu) no 909/2014 , has recorded dlt transferable securities that do not fulfil the conditions laid down in article 3(1) and 3(2); ### the entity operating a dlt mtf , that has requested an exemption from article 3(2) of regulation (eu) no 909/2014 , has recorded dlt transferable securities that do not fulfil the conditions laid down in article 3(1) and 3(2);


### the investment firm or market operator , operating a dlt mtf , that has requested specific permission to be exempted from article 3(2) of regulation (eu) no 909/2014 , has exceeded the thresholds referred to in article 3(3) or (5) , third subparagraph; or ### the entity operating a dlt mtf , that has requested specific permission to be exempted from article 3(2) of regulation (eu) no 909/2014 , has exceeded the thresholds referred to in article 3(3) or (5) , third subparagraph; or


### the competent authority becomes aware that the investment firm or market operator that applied for a specific permission to operate a dlt mtf , obtained such permission or related exemptions on the basis of misleading information including any material omission. ### the competent authority becomes aware that the entity that applied for a specific permission to operate a dlt mtf , obtained such permission or related exemptions on the basis of misleading information including any material omission.


### 7. where in the course of its activity , an investment firm or a market operator operating a dlt mtf proposes to introduces a material change to the functioning of the dlt , or to its services or activities , which requires a new permission , a new exemption , or the modification of one or more of its existing exemptions or of any conditions attached to it , it shall request such permission , exemption or modification in accordance with article 4. such permission , exemption or modification shall be processed by the competent authority , in accordance with paragraphs 2 to 5. ### 7. where in the course of its activity , an entity operating a dlt mtf proposes to introduces a material change to the functioning of the dlt , or to its services or activities , which requires a new permission , a new exemption , or the modification of one or more of its existing exemptions or of any conditions attached to it , it shall request such permission , exemption or modification in accordance with article 4. such permission , exemption or modification shall be processed by the competent authority , in accordance with paragraphs 2 to 5.


### the functioning of its proprietary dlt as referred to in article 6(2); ### the functioning of the dlt as referred to in article 6(2) and (2a);


### a flaw has been discovered in the functioning of the dlt or in the services and activities provided by the csd operating a dlt securities settlement system that poses a risk to market integrity , investor protection or financial stability , which outweighs the benefits of the services and activities under experimentation; or ### a flaw has been discovered in the functioning of the dlt or in the services and activities provided by the entity operating a dlt securities settlement system that poses a risk to market integrity , investor protection or financial stability , which outweighs the benefits of the services and activities under experimentation; or


### the csd operating the dlt securities settlement system has breached the conditions attached to the exemptions granted by the competent authority; or ### the entity operating the dlt securities settlement system has breached the conditions attached to the exemptions granted by the competent authority; or


### the csd operating the dlt securities settlements system has recorded financial instruments that do not fulfil the conditions laid down article 3(1) and (2); or ### the entity operating the dlt securities settlements system has recorded financial instruments that do not fulfil the conditions laid down article 3(1) and (2); or


### the csd operating the dlt securities settlements system has exceeded the thresholds referred to in article 3(3) and (5) , third subparagraph; or ### the entity operating the dlt securities settlements system has exceeded the thresholds referred to in article 3(3) and (5) , third subparagraph; or


### the competent authority becomes aware that the csd operating the dlt securities settlement system that applied for a specific permission to operate a dlt securities settlement system , obtained such permission or related exemptions on the basis of misleading information including any material omission. ### the competent authority becomes aware that the entity operating the dlt securities settlement system that applied for a specific permission to operate a dlt securities settlement system , obtained such permission or related exemptions on the basis of misleading information including any material omission.


### 7. where in the course of its activity , a csd operating a dlt securities settlement system proposes to introduces a material change to the functioning of the dlt , or to its services or activities , which require a new permission , a new exemption or the modification of one or more of its existing exemptions or of any attached conditions , it shall request such permission , exemption or modification , in accordance with article 5. such permission , exemption or modification , shall be processed by the competent authority , in accordance with paragraphs 2 to 5. ### 7. where in the course of its activity , an entity operating a dlt securities settlement system proposes to introduces a material change to the functioning of the dlt , or to its services or activities , which require a new permission , a new exemption or the modification of one or more of its existing exemptions or of any attached conditions , it shall request such permission , exemption or modification , in accordance with article 5. such permission , exemption or modification , shall be processed by the competent authority , in accordance with paragraphs 2 to 5.


### where in the course of its activity , a csd operating a dlt securities settlement system requests a new permission or exemption , it shall request such permission or exemption , in accordance with article 5. such permission or exemption or modification shall be processed by the competent authority , in accordance with paragraphs 2 to 5. ### where in the course of its activity , an entity operating a dlt securities settlement system requests a new permission or exemption , it shall request such permission or exemption , in accordance with article 5. such permission or exemption or modification shall be processed by the competent authority , in accordance with paragraphs 2 to 5.


### the number and value of dlt transferable securities admitted to trading on the dlt mtf , the number and value of dlt transferable securities recorded by a csd operating dlt securities settlement systems , and where applicable , the number and value of transferable securities recorded by an investment firm or market operator operating on a dlt mtf; ### the number and value of dlt transferable securities admitted to trading on the dlt mtf , the number and value of dlt transferable securities recorded by an entity operating dlt securities settlement systems , and where applicable , the number and value of transferable securities recorded by an entity operating on a dlt mtf;


### the number and value of transactions traded on a dlt mtf and settled either by a csd operating a dlt securities settlement system , or where applicable , by an investment firm or market operator operating a dlt mtf; ### the number and value of transactions traded on a dlt mtf and settled either by an entity operating a dlt securities settlement system , or where applicable , by an entity operating a dlt mtf;


### the number of dlt mtfs and csds operating a dlt securities settlement system which have been granted a specific permission under this regulation; ### the number of dlt mtfs and entities operating a dlt securities settlement system which have been granted a specific permission under this regulation;


### the number and value of dlt transferable securities admitted to trading on dlt mtfs , the number and value of dlt transferable securities recorded by csds operating dlt securities settlement systems , and where applicable , the number and value of transferable securities recorded by dlt mtfs; ### the number and value of dlt transferable securities admitted to trading on dlt mtfs , the number and value of dlt transferable securities recorded by entities operating dlt securities settlement systems , and where applicable , the number and value of transferable securities recorded by dlt mtfs;


### the number and value of transactions traded on dlt mtfs and settled by csds operating dlt securities settlement system , and where applicable , by dlt mtfs; ### the number and value of transactions traded on dlt mtfs and settled by entities operating dlt securities settlement system , and where applicable , by dlt mtfs;


### a. whereas , with less than seven years to go until the deadline for the implementation of the 2030 agenda , the new geopolitical landscape and the multiple crises in various areas have hindered the achievement of the sdgs; whereas the 2030 agenda and the 17 sdgs are key to addressing the current challenges and reorienting the global compass towards a socially and environmentally just transition that leaves no one behind; ### a. whereas , with less than seven years to go until the deadline for the implementation of the 2030 agenda , the new geopolitical landscape and the multiple crises in various areas have hindered the achievement of the sdgs; whereas the 2030 agenda and the 17 sdgs are key to addressing the current challenges and reorienting the global compass towards a socially and environmentally just transition that leaves no one and no place behind;


### a. whereas , with less than seven years to go until the deadline for the implementation of the 2030 agenda , the new geopolitical landscape and the multiple crises in various areas have hindered the achievement of the sdgs; whereas the 2030 agenda and the 17 sdgs are key to addressing the current challenges and reorienting the global compass towards a socially and environmentally just transition that leaves no one behind; ### a. whereas , with less than seven years to go until the deadline for the implementation of the 2030 agenda , the new geopolitical landscape and the multiple crises in various areas have further slowed the achievement of the sdgs; whereas the 2030 agenda and the 17 sdgs are key to addressing the current challenges and reorienting the global compass towards a socially and environmentally just transition that leaves no one behind;