### 13. observes that there is also room for significant revenue and efficiency gains at tax administration level; notes that an effective and efficient tax administration , as well as a high degree of tax certainty , can encourage investment and foster competitiveness; ### 13. observes that there is also room for significant revenue and efficiency gains at tax administration level; notes that an effective and efficient tax administration , as well as a high degree of tax certainty , can encourage investment and foster competitiveness; stresses that leveraging digital technology is crucial towards a simpler , more effective and efficient tax collection;


### 14. welcomes initiatives taken by the commission within the framework of the green deal; notes with concern that no clear and holistic guidance exists on how taxation should contribute to achieving the goals set out in the green deal and considers that the taxation system should therefore be reformed; ### 14. welcomes initiatives taken by the commission within the framework of the green deal such as the revision of the energy taxation directive(etd) and the carbon border adjustment mechanism (cbam); notes with concern that no clear and holistic guidance exists on how taxation should contribute to achieving the goals set out in the green deal and considers that the taxation system should therefore be reformed;


### 15. calls on the commission to publish a roadmap and toolkit to guide member states in reforming their tax systems post covid-19; calls on the commission to launch a comprehensive evaluation , to be followed by an action plan , on existing and important distortions in all tax areas that could severely impede member states in reforming their tax systems; ### 15. calls on the commission to publish a roadmap and toolkit to guide member states in reforming their tax systems post covid-19; calls on the commission to prepare a comprehensive evaluation report submitted to the european parliament , to be followed by an action plan , on existing and important distortions in all tax areas that could severely impede member states in reforming their tax systems;


### 16. welcomes the commission’s soon-to-be-published revision of the energy taxation directive17 ; calls on member states to agree to close tax exemptions for aviation and maritime fuels , increase minimum rates and restore the level playing field; calls on the commission to launch a proposal for a progressive european kerosene tax; ### 16. welcomes the commission’s soon-to-be-published revision of the energy taxation directive17 ; encourages the commission to provide an impact assessment that considers the differentiated impact based on socioeconomic background and on each country; reminds that , for instance , low-income households and specific regions are more exposed to energy poverty issues; stresses that the climate transition must ensure affordable heating alternatives and contribute to reducing energy poverty;


### a. whereas the european semester plays an essential role in coordinating economic and budgetary policies in the member states; ### a. whereas the european semester plays an essential role in coordinating economic , employment , social and budgetary policies in the member states; notes that the semester , has been expanded to include , among other aspects , issues related to the financial sector and taxation , as well as objectives of the un sdgs; notes that in order to further strengthen economic and social resilience , the eu must deliver on the principles of the european pillar of social rights;


### a. whereas the european semester plays an essential role in coordinating economic and budgetary policies in the member states; ### a. whereas the european semester plays an essential role in coordinating economic and budgetary policies in the member states and it was temporarily adapted to coordinate it with the recovery and resilience facility;


### b. whereas according to the commission’s forecasts , the gdp growth rate for 2021 stands at 4.3 % of gdp per capita in the euro area and 4.2 % in the eu 27 , and is expected to rise to 4.4 % respectively in 2022; ### b. whereas according to the commission’s summer forecast , the gdp growth rate for 2021 stands at 4.8 % and for 2022 at 4.5 % in both the eu 27 and euro area; whereas differences across countries in the pace of the recovery from the crisis remain substantial;


### e. whereas unemployment rates decreased to an average rate of 8.4 % in the euro area and 7.6 % in the eu 27 in may 2021 , and whereas a further decrease to 7.8 % and 7 % respectively is expected in 2022; ### e. whereas the european union overall lost more than 3 million jobs in 2020 and unemployment rates increased in all member states during the crisis; whereas young people have experienced the sharpest decline in employment; whereas unemployment rates decreased since last summer to an average rate of 8.4 % in the euro area and 7.6 % in the eu 27 in may 2021; whereas unemployment rates are only expected to fall below 2019 levels in three member states; whereas in april 2021 , the youth unemployment rate was 17.1 % in the eu and 17.2 % which is higher than the pre-crisis levels;


### f. whereas in 2020 , member states provided total fiscal support estimated at more than 6.5 % of gdp , and as a result , the euro area and eu aggregate government deficit increased from historically low levels of around 0.5 % of gdp in 2019 to around 7 % in 2020 , which will inevitably be reflected in the aggregate debt levels; ### f. whereas in 2020 , member states provided total fiscal support estimated at more than 6.5 % of gdp , and as a result , the euro area and eu aggregate government deficit increased from historically low levels of around 0.5 % of gdp in 2019 to around 7 % in 2020 , which will inevitably be reflected in the aggregate debt levels; whereas the increase in the deficit is mainly due to the adoption of new or extended emergency support measures in response to the need for new restrictions to economic activity in the first part of the year 2021;


### h. whereas reference values of up to 3 % of planned or actual government deficit and 60 % of debt to gdp are defined by the tfeu; ### h. whereas reference values of up to 3 % of planned or actual government deficit and 60 % of debt to gdp are defined by the tfeu; whereas these reference values were established in the early 1990s under fundamentally different economic circumstances and they are not based on a scientific analysis of the debt sustainability of public budgets;


### i. whereas aspects relating to the possible future of the eu economic governance framework were dealt with by the review of the macroeconomic legislative framework in the report of the committee on economic and monetary affairs of 22 june 2021 dedicated to that issue; ### i. whereas aspects relating to the possible future of the eu economic governance framework were dealt with by the review of the macroeconomic legislative framework in the report of the european parliament of 8 july 2021 dedicated to that issue;


### 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 slowly recovering from the devastating impact of the global pandemic; remains concerned about low growth potential compared to other regions in the post-pandemic recovery;


### 2. acknowledges that despite the progress with vaccination campaigns , substantial risks to the forecasts remain from an epidemiological and economic perspective , which in turn could delay the transition to a more sustainable and future-proof economy; ### 2. acknowledges that despite the progress with vaccination campaigns , substantial risks to the forecasts remain from an epidemiological and economic perspective , which in turn create a high level of uncertainty and could further delay the transition to a more sustainable and future-proof economy;


### 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 recovery and resilience facility (rrf) will help to make eu economies and societies more sustainable , inclusive , resilient and better prepared for the just , green and digital transitions , foster economic , social and territorial cohesion , bring convergence and help the member states to mitigate the economic and social impact of the crisis; 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 commission forecasts , economic activity in the eu is expected to pick up in all member states , with acceleration as of the second half of 2021 , in the positive scenario that 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;


### responsible fiscal policies ### responsible fiscal and sustainable policies


### 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; expects however that the general escape clause will remain activated as long as the underlying justification of the activation exists in order to support the efforts of the member states to recover from the pandemic crisis and strengthen their competitiveness , as well as economic and social resilience; notes , furthermore , that the decision to deactivate the general escape clause should be taken as an overall assessment of the state of the economy , social and employment situation based on quantitative and qualitative criteria; points out that country-specific situations have to be taken into account also 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; 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; supports the decision to deactivate the general escape clause following 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 on a country-by-country basis; 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. notes 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;


### 7. is convinced that coordination of national fiscal policies remains crucial in underpinning the recovery; notes that the overall fiscal stance , taking into account national budgets and the rrf , should remain supportive in 2021 and 2022; ### 7. is convinced that coordination of national fiscal policies remains crucial in underpinning the recovery; notes that the overall fiscal stance , taking into account national budgets and the rrf , should remain supportive as long as necessary;


### 7. is convinced that coordination of national fiscal policies remains crucial in underpinning the recovery; notes that the overall fiscal stance , taking into account national budgets and the rrf , should remain supportive in 2021 and 2022; ### 7. is convinced that coordination of national fiscal policies remains crucial in underpinning the recovery; agrees that the overall fiscal stance , taking into account national budgets and the rrf , should remain supportive in 2021 and 2022;


### 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 flexible to adjust to the evolving situation as warranted , and that a premature withdrawal of fiscal support should be avoided at all costs; 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 , geographic and demographic limitations , 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 , 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 , depending on the further evolution of the pandemic , 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 use the rrf to finance additional investment to support the recovery , while pursuing responsible fiscal and sustainable policies without prejudice to social equity and article 9 tfeu; stresses the importance of the member states using the potential of the rff to support the necessary structural changes in order to accelerate the transition to a more sustainable , resilient and socially inclusive eu and the transformation to more globally competitive , future-proof , agile industries; agrees that as the public health situation normalises and restrictions affecting economic activity are lifted , member states can start phasing out the underlying fiscal stance , allowing fiscal measures to maximise support to the recovery without pre-empting future fiscal trajectories;


### 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 , while pursuing a prudent fiscal policy; stresses the importance of the member states using the potential of the rff to support the transformation to more globally competitive , future-proof industries; agrees that the growth of nationally financed current expenditure should be kept under control , allowing fiscal measures to maximise support to the recovery;


### 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 and macroeconomic stability remain the guiding principles of the eu’s economic agenda complemented through the six priorities of the rrf; stresses , furthermore , that the digital , green and just 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 , social fairness and macroeconomic stability remain the guiding principles of the eu’s economic agenda; stresses 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;


### structural reforms and investment ### socially balanced , inclusive and sustainable structural reforms , investment and public revenues


### 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 and welcomes that the recovery plans are based on priority criteria as set out in the regulation on establishing a recovery and resilience facility , namely for the green transition , digital transformation , smart , sustainable and inclusive growth , social and territorial cohesion , health , economic , social and institutional resilience and policies for the next generation , children and the youth;


### 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; stresses that restoring the growth potential will be a key element for the structural transformations needed to adapt to the challenges;


### 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 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 structural reforms that enhance efficient government spending , including the quality and efficiency of the financial administration and acknowledges that high-quality 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 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 and insists that within such strategy , smes should continue to be accorded privileged attention;


### 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 fact that the updated new european industrial strategy , the european digital strategy , the european green deal 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;


### 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 and reduce social inequalities; notes that in order to further strengthen economic and social resilience , the eu must deliver on the principles of the european pillar of social rights , the sustainable development goals and the european green deal;


### 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 fighting poverty , and creating economic 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 socially fair manner;


### 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 and that the pandemic could also be exacerbating economic divergences; notes the vulnerabilities in the financial sector as a result of the pandemic and calls on the commission to pay close attention to national actions in relation to macro-financial stability , notably the risks of financial spillovers in the euro area; calls on the member states to take advantage of the unprecedented opportunity provided by the rrf to significantly reduce existing macroeconomic imbalances;


### country-specific recommendations (csrs) ### european semester and country-specific recommendations (csrs)


### 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; ### deleted


### 19. recalls that member states , in their recovery and resilience plans , are required to effectively address all or a significant subset of challenges identified in the relevant csrs , including the fiscal aspects thereof , and that beyond the scope of the rrf , those recommendations that are not addressed remain valid and will continue to be monitored under the european semester framework; ### 19. recalls that member states , in their recovery and resilience plans , are required to effectively address all or a significant subset of challenges identified in the relevant csrs , including the fiscal aspects thereof and will continue to be monitored under the european semester framework; underlines , however , that the 2019 pre-pandemic csrs should be interpreted in the light of the current crisis and the new challenges to ensure coherence between them , the 2020 csrs and the general and specific objectives of the rrf regulation , and that future csrs should not contradict the objectives of the rrf;


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


### 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; ### deleted


### 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 rough estimates show that a revenue-neutral tax reform could reduce the standard vat rate on average by 7 percentage points in the eu-27 , in addition to reducing compliance costs; highlights that , according to those estimates , the size of the reduction varies between eu member states from 2 to 13 percentage points;


### 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 , by some estimates , possibly reduce the standard rate but that is not the only answer to the need to tackle the complexity of the tax system and risks having a social impact on citizens and consumers in terms of higher prices;


### 3. takes the view that applying a multitude of reduced rates aggravates the complexity and opacity of the tax system , facilitates fraud and increases compliance costs; ### 3. takes the view that applying a multitude of reduced rates has a legitimate purpose in society , notably to reduce the regressiveness of the vat system and helping achieve certain national policy objectives , but it also aggravates the complexity and opacity of the tax system , increases compliance costs and may facilitate fraud;


### 3. takes the view that applying a multitude of reduced rates aggravates the complexity and opacity of the tax system , facilitates fraud and increases compliance costs; ### 3. takes the view that , in certain countries , applying reduced rates may be an instrument of social leverage and protection for a number of goods and sectors , such as health , food or construction;


### 4. observes that the vat gap fluctuates in line with the business cycle , and that low tax compliance is correlated with high standard vat rates and multiple vat rates as well as lower legal and judicial efficiency; ### 4. observes that the vat gap fluctuates in line with the business cycle , and that low tax compliance is sometimes associated with high standard vat rates and multiple vat rates but also with lower legal and judicial efficiency , weaker legal institutions , higher perceived levels of corruption and the overall share of the shadow economy;


### 7. notes digitalisation’s potential to reduce compliance costs; maintains that digital innovations23 are likely to reduce compliance costs and help increase the transparency of commercial transactions; stresses the need to ensure data security and individual and corporate privacy; ### 7. notes digitalisation’s potential to reduce compliance costs in the long term; maintains that digital innovations23 are likely to reduce compliance costs and help increase the transparency of commercial transactions; stresses the need to ensure data security and individual privacy; insists that smes and other vulnerable economic actors need to be supported through eu programmes and eu-induced trainings in the digital transition in order to benefit from it and contribute to it; stresses that such general approach towards accelerating the digitalisation of smes’ know-how and operations on the ground would ultimately benefit vat collection;


### 8. observes that the wide variety of rates causes price distortion in the internal market , creating incentives for cross-border purchases and giving rise to increased tax competition between member states; recalls that companies need clear and unambiguous vat rules to encourage cross-border business and reduce their administrative burdens; ### 8. observes that the wide variety of rates may cause price distortion in the internal market , creating incentives for cross-border purchases and giving rise to increased tax competition between member states; recalls that companies need simplified and centralised access to information on rates , as well as clear and unambiguous vat rules to encourage cross-border business and reduce their administrative burdens; welcomes in this respect the simplified and digitalised method for registering under the vat exemption regime for smes engaging in cross-border business activities through an online portal , thus reducing costs and administrative burdens;


### 9. stresses that a well-designed vat system is neutral and should not affect trade , but that in practice this principle is difficult to verify at global level given the application of vat exemptions , the ineffectiveness of refund systems , the wide variety of rates – incurring higher compliance costs – and the fact that vat has superseded income taxes with a view to encouraging trade; ### 9. stresses that a well-designed vat system is neutral and should not affect trade , but that in practice this principle is difficult to verify at global level given the application of vat exemptions , the ineffectiveness of refund systems , the wide variety of rates – incurring higher compliance costs – and the fact that vat has superseded income taxes with a view to encouraging trade; stresses that an increasing number of smes are willing to trade across the eu , especially through online transactions , and that the eu vat system should aim at facilitating such cross-border growth;


### 10. observes that the application of reduced rates does not systematically give rise to permanent price reductions for the consumer; that the effectiveness of a reduced rate depends on a number of factors , such as the extent to which businesses pass it on to consumers , its duration over time , the size of the reduction and the complexity of the rate system; that the passing-on of reductions in their entirety is therefore a random process and should not be the basis for policy-making; that it is impossible to target low-income households; ### 10. observes that the effectiveness of a reduced rate depends on a number of factors , such as the extent to which businesses pass it on to consumers , its duration over time , the size of the reduction and the complexity of the rate system;


### 10. observes that the application of reduced rates does not systematically give rise to permanent price reductions for the consumer; that the effectiveness of a reduced rate depends on a number of factors , such as the extent to which businesses pass it on to consumers , its duration over time , the size of the reduction and the complexity of the rate system; that the passing-on of reductions in their entirety is therefore a random process and should not be the basis for policy-making; that it is impossible to target low-income households; ### 10. observes that the application of reduced rates does not systematically give rise to permanent price reductions for the consumer; that the effectiveness of a reduced rate depends on a number of factors , such as the extent to which businesses pass it on to consumers , its duration over time , the size of the reduction and the complexity of the rate system; that the passing-on of reductions is therefore a process that requires extensive analysis and impact assessment to make sure that reductions only apply where they can benefit low-income households;


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


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


### 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; ### deleted


### 13. takes the view that direct tax incentives , such as direct grants or tax credits targeting specific consumers and producers , are more effective , flexible , visible and cost-effective tools for achieving these social and environmental objectives; ### 13. takes the view that direct tax incentives , such as direct grants or tax credits targeting specific consumers and producers , can be effective , flexible , visible and cost-effective tools for achieving these social and environmental objectives;


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


### 16. endorses the findings of the diw econ study which stresses that on average the standard rate was applied to 71% of the total tax base in the member states in 2019; points out that diversified vat systems impose costs on businesses , particularly smes via increased compliance costs , create distortions in the internal market and trade , and incur costs on government through lost revenue; adds that reduced rates are an insufficient means of achieving revenue-distribution or environmental objectives; ### 16. endorses the findings of the diw econ study which stresses that on average the standard rate was applied to 71% of the total tax base in the member states in 2019;points out that the costs of diversified vat systems on businesses , particularly smes the distortions they might cause in the internal market and trade , and their impact on government revenue need to be carefully assessed in order to achieve a cohesive , fair and efficient vat system in the eu; adds that reduced rates are an insufficient means of achieving revenue-distribution or environmental objectives;


### 17. notes the difficulties in reducing the vat gap between member states owing to the need to maintain a number of vat exemptions for certain goods and services and the willingness of member states to maintain reduced rates of at least 5%; acknowledges that member states need to conserve the flexibility to set their own vat rates given the importance of this tax as a budgetary instrument; ### 17. notes the difficulties in reducing the vat gap between member states owing a combination of factors; acknowledges that member states need to conserve the flexibility to set their own vat rates given the importance of this tax as a budgetary instrument;


### 18. calls for a simplified vat system with limits on exemptions and non-standard rates to be introduced with a view to promoting competitiveness; ### 18. calls for a simplified vat system with limits on exemptions and non-standard rates to be introduced with a view to promoting efficiency and fairness in the internal market;


### 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 the introduction of a simplified vat system that reduces compliance costs and at the same time promotes business 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 legislative loopholes , lack of resources and digital efficiency in tax administrations , the ineffectiveness of enforcement and control measures , particularly those against tax evasion and avoidance and aggressive tax planning;


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


### 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 its third pillar , a european deposit insurance scheme (edis) is still lacking;


### 5. underlines the vital contribution to addressing the crisis of public guarantee schemes , moratoria on loan repayments for borrowers in financial difficulty , the central banks’ liquidity programmes and the ecb’s targeted longer-term refinancing operations (tltro) and pandemic emergency purchase programme (pepp); ### 5. underlines the vital contribution to addressing the crisis of public guarantee schemes , moratoria on loan repayments for borrowers in financial difficulty , the central banks’ liquidity programmes and the ecb’s targeted longer-term refinancing operations (tltro) and pandemic emergency purchase programme (pepp); stresses the importance of keeping the above measures in place as long as necessary;


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


### e. whereas consumer protection varies across the banking union; ### e. whereas consumer and investor protection is paramount to the deepening of the capital markets union (cmu) , but varies across the banking union;


### f. whereas prudential and anti-money laundering supervision is necessary; ### f. whereas fully harmonised standards and institutional cooperation on the prudential aspects of anti-money laundering and anti-money laundering supervision and enforcement are necessary to protect the integrity of the eu’s financial system;


### g. whereas the withdrawal of the uk from the eu has resulted in the relocation of banking services to the eu; ### g. whereas the withdrawal of the uk from the eu has resulted in the relocation of some banking services to the eu;


### h. whereas the eu and the uk are committed to maintaining regulatory and supervisory cooperation in the field of financial services; ### h. whereas the eu and the uk are currently committed to maintaining regulatory and supervisory cooperation in the field of financial services; whereas this engagement by the uk should be kept for future relations;


### j. whereas depositors across the banking union should enjoy the same level of protection; ### j. whereas depositors across the banking union must enjoy the same level of protection;


### 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 fiscal expenditures to protect society and the economy , and is leading to a sharp increase in government debt; whereas tax fraud , tax evasion and tax avoidance undermine government revenues , as well as the sustainability of public finances , taxation systems and tax fairness; whereas it is paramount to keep taxes low to support the sustainable growth of the economy , while not undermining a sufficient income to the budget;


### 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 ensuring , inter alia: (i) an effective level playing field for tax payers , 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 boost investments that will support the reduction in the debt to gdp ratio and (iii) fair taxation of businesses and citizens , enhancing both trust in society and fair competition;


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


### 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 and the need to support business , especially smes;


### 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 avoid distorting investment decisions and should act as a tool in supporting the fulfilment of union goals such as the green deal , social justice or digitalisation of the european economy; stresses that the reporting requirements should not generate higher administrative costs for economic actors , notably for small and medium-sized enterprises (smes); notes that in order to effectively address lost tax revenues , better quality and possible higher quantities of data may be needed; 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;


### 5. is of the opinion that better estimates of overall tax losses in the union are essential for efficient proposals on ways to effectively reduce tax losses; ### 5. is of the opinion that better estimates of overall tax losses in the union are essential for efficient proposals on ways to effectively reduce tax losses; welcomes the creation of the eu tax observatory and recommends the commission to find means to perpetuate this action that was initiated by a pilot project of the union annual budget;


### 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; recalls the existence of article 116 tfeu; 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”;


### 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 , especially for smes , 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 ;


### 12. welcomes the efforts of the commission to address the problem at least partially by introducing various initiatives , but stresses the high importance of the union in contributing to the success of global negotiations towards the ongoing necessary reforms; ### 12. welcomes the efforts of the commission to address the problem at least partially by introducing various initiatives , but stresses the high importance of the union in contributing to the success of global negotiations towards the ongoing necessary reforms; welcomes the announcement made by the commission to implement both pillars of the inclusive framework via directives before the end of 2022; stresses that while the commission's actions would not undermine the oecd initiatives , the specificities of the union and its single market might require an expansion of the level of ambition;


### 13. notes that the reduction of the estimated gap10 due to corporate tax avoidance at around eur 35 billion per year from the previous commission estimations of eur 50-70 billion before anti-beps measures were introduced and the correlation between an improvement and the legislative efforts on tax avoidance carried out by the commission; stresses that situations where some firms are still able to reduce their tax bill is undermining fair competition in the single market and often harming the competitiveness of smes; ### 13. notes that the reduction of the estimated gap10 due to corporate tax avoidance at around eur 35 billion per year from the previous commission estimations of eur 50-70 billion before anti-beps measures were introduced and the correlation between an improvement and the legislative efforts on tax avoidance carried out by the commission; stresses that situations where some firms are still able to reduce their tax bill is undermining fair competition in the single market and often harming the competitiveness of smes; recalls that the tax gap due to corporate tax avoidance can amount up to eur 190 billion when special tax arrangements , inefficiencies in collection and other practices are taken into account;


### 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 at least 15% on the global profits of mnes; notes the need for effective implementation in the union and beyond; 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; understands that the commission’s proposal for a digital levy has been put on hold and demands the commission to communicate quickly on the alternatives it is considering , also in the context of the union's own resources;


### 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 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; recalls that previous attempts by the union to define a common rulebook considered three factors: labour , assets and sales; considers that focusing on one factor would have an unbalanced impact on the tax revenues of member states;


### 17. considers , however , that the befit initiative should be supported by the political process in building political support for change and that the initiative should be accompanied by a thorough impact assessment to shape future proposals , which should contribute to reaching a consensus between member states; ### 17. considers , however , that the befit initiative should be supported by the political process in building political support for change and that the initiative should be accompanied by a thorough impact assessment to shape future proposals , which should contribute to reaching a consensus between member states; calls on , therefore , the commission to initiate a wide inclusive consultation process with stakeholders , member states , including their national parliaments , and the european parliament;


### 18. considers that the new corporate tax agenda should include a mechanism to address the debt-equity bias through an incentive system , helping to support the resilience of companies in adverse economic circumstances in the future; ### 18. notes that the new corporate tax agenda includes a mechanism to address the debt-equity bias through an incentive system , helping to support the resilience of companies in adverse economic circumstances in the future; recalls that , in the past , allowances for corporate equity have been exploited as tax loopholes in the union; requests the commission to incorporate strong anti- avoidance provisions to avoid any allowance on equity to be used as a new tool for base erosion if an allowance for corporate equity should be set up; recalls that the reduction of the deduction of exceeding borrowing costs can also reduce the debt-equity bias;


### b. more certainty for taxpayers ### b. more certainty for taxpayers and/or member states' tax administrations


### the european parliament calls on the commission to reflect the experience and identify remaining gaps in the existing council directive (eu) 2017/1852 on tax dispute resolution mechanisms in the union , in order to address the existing conflicts and uncertainties regarding residency for both natural and corporate persons , causing risks of double taxation. the regime set out in the directive must ensure the time limits for obtaining a decision , which will be legally binding and enforced. the analyses should be done in 2022 , and a possible change of directive presented in 2023. ### the european parliament calls on the commission to reflect the experience and identify remaining gaps in the existing council directive (eu) 2017/1852 on tax dispute resolution mechanisms in the union , in order to address the existing conflicts and uncertainties regarding residency for both natural and corporate persons , causing risks of double taxation. the european parliament also requests that the outcome of disputes should be made publicly available in the form of a summary that would publish , among other essential , but non commercially sensitive , information , the resulting effective tax rate paid by the taxpayer. the regime set out in the directive must ensure the time limits for obtaining a decision , which will be legally binding and enforced. the analyses should be done in 2022 , and a possible change of directive presented in 2023.


### a. whereas eu taxpayers held eur 1.5 trillion offshore in 2016 , resulting in an average tax revenue loss of eur 46 billion in the eu as a result of tax evasion by individuals12 ; ### a. whereas the eu isconfronted with unfair or aggressive tax practices , such as the fact thateuropean union member states lose between eur 160-190 billion per year as aresult of tax evasion and profit- shifting by individuals and multinationalcorporates; whereas this loss is of significant magnitude given the sanitary , social and economic crisis the union is currently facing and struggling with; whereas eu taxpayers held eur 1.5 trillion offshore in 2016 , resulting in an average tax revenue loss of eur 46 billion in the eu as a result of tax evasion by individuals12 ;


### b. whereas the difficulties encountered in the council in agreeing on the improvements put forward by the commission demonstrates the need to move to a qualified majority in tax matters; ### b. whereas the difficulties encountered in the council in agreeing on the improvements put forward by the commission demonstrates the need to move to a qualified majority in tax matters ; whereas national stand-alone approaches do not provide efficient answers to global tax issues; whereas international standards on tax exchange of information have been implemented at eu level; whereas some inconsistencies between the international and european standards remain , notably on deadline to communicate tax information; whereas a majority of countries release aggregated country-by-country reports information under action 13 from the base erosion and profit shifting action plan;


### c. whereas it is in the responsibility of parliament to exercise political scrutiny over the commission , including its enforcement and implementation policy , and whereas this requires adequate access to relevant information; ### c. whereas it is in the responsibility of parliament to exercise political scrutiny over the commission , including its enforcement and implementation policy , and whereas this requires adequate access to relevant information; whereas for several dac revisions the council reached an agreement even before the ep could adopt its report for consultation;


### 2. notes , however , that some types of income and assets are still excluded from the scope , which presents a risk of circumventing tax obligations; calls on the commission to assess the need and the most appropriate way to include the following ownership information , items of income and non-financial assets in the automatic exchange of information (aeoi): (a) the beneficial owners of immovable property and companies; (b) capital gains related to immovable property and capital gains related to financial assets , in particular to find ways for tax administrations to be better informed to identify realised capital gains; (c) non-custodial dividend income; (d) non-financial assets such as cash , art , gold or other valuables held at free ports , customs warehouses or safe deposit boxes; and (e) ownership of yachts and private jets; ### 2. notes , however , that some types of income and assets are still excluded from the scope , which presents a risk of circumventing tax obligations; calls on the commission to assess the need and the most appropriate way to include the following ownership information , items of income and non-financial assets in the automatic exchange of information (aeoi): (a) the beneficial owners of immovable property and companies; (b) capital gains related to immovable property and capital gains related to financial assets , in particular to find ways for tax administrations to be better informed to identify realised capital gains; (c) non-custodial dividend income; (d) non-financial assets such as cash , art , gold or other valuables held at free ports , customs warehouses or safe deposit boxes; and (e) ownership of yachts and private jets; f) e-money and/or crypto-assets;


### 2. notes , however , that some types of income and assets are still excluded from the scope , which presents a risk of circumventing tax obligations; calls on the commission to assess the need and the most appropriate way to include the following ownership information , items of income and non-financial assets in the automatic exchange of information (aeoi): (a) the beneficial owners of immovable property and companies; (b) capital gains related to immovable property and capital gains related to financial assets , in particular to find ways for tax administrations to be better informed to identify realised capital gains; (c) non-custodial dividend income; (d) non-financial assets such as cash , art , gold or other valuables held at free ports , customs warehouses or safe deposit boxes; and (e) ownership of yachts and private jets; ### 2. notes , however , that some types of income and assets are still excluded from the scope , which presents a risk of circumventing tax obligations; calls on the commission to assess the need and the most appropriate way to include the following ownership information , items of income and non-financial assets in the automatic exchange of information (aeoi): (a) the beneficial owners of immovable property and companies; (b) capital gains related to immovable property and capital gains related to financial assets , including currency trading , in particular to find ways for tax administrations to be better informed to identify realised capital gains; (c) non-custodial dividend income; (d) non-financial assets such as cash , art , gold or other valuables held at free ports , customs warehouses or safe deposit boxes; and (e) ownership of yachts and private jets;


### 5. observes that dac3 contains certain blind spots; therefore calls for the scope of eoi under dac3 to be widened to include informal arrangements , post-transaction agreements , natural persons and rulings which are still valid , but which were issued , amended or renewed before 2012; ### 5. observes that dac3 contains certain blind spots; therefore calls for the scope of eoi under dac3 to be widened to include informal arrangements , post-transaction agreements , natural persons and rulings which are still valid , but which were issued , amended or renewed before 2012; ; regrets that dac 3 information is not yet widely used by tax administrations of member states and advises that a specific notification should be sent to the tax administrations where a company benefiting from a tax ruling in the scope of dac 3 has a taxable presence regrets that bilateral and multilateral apas are excluded from the eoi under dac3 where a related international tax agreement does not allow for their disclosure; calls on member states to reject any future international tax agreement which do not permit the disclosure of apas;


### 6. notes that the information exchanged is of limited quality; calls for stronger enforcement procedures at member state level; calls on the commission to include on the spot visits in member states and to assess the effectiveness of their monitoring schemes; calls on the member states to establish a system of quality and completeness checks of dac data , as well as procedures for the audit of reporting obliged entities regarding the quality and completeness of data sent; ### 6. notes that the information exchanged is of limited quality; calls for stronger enforcement procedures at member state level; calls on the commission to include on the spot visits in member states and to assess the effectiveness of their monitoring schemes; calls on the member states to establish a system of quality and completeness checks of dac data , regular feedback provision for the information received , reports on the usefulness of interventions to the commission to improve future decision making , as well as procedures for the audit of reporting obliged entities regarding the quality and completeness of data sent;


### 15. deplores the fact that one member state , malta , has received an overall ‘partially compliant’ score in the peer review by the global forum for eoir; regrets the fact that material deficiencies have been identified in 18 member states15 ; ### 15. deplores the fact that one member state , malta , has received an overall ‘partially compliant’ score in the peer review by the global forum for eoir; notes nonetheless that malta is working to address the recommendations made in the global forum report , by notably stepping up its supervisory approach and by investing in human resourcing; further notes that a trusts ultimate beneficial ownership register (tubor) has been set-up as part of wider reforms increasing malta’s effectiveness in ensuring availability of tax information; regrets the fact that material deficiencies have been identified in 18 member states15 ;


### 15. deplores the fact that one member state , malta , has received an overall ‘partially compliant’ score in the peer review by the global forum for eoir; regrets the fact that material deficiencies have been identified in 18 member states15 ; ### 15. deplores the fact that one member state , malta , has received an overall ‘partially compliant’ score in the peer review by the global forum for eoir; regrets the fact that material deficiencies have been identified in 18 member states15 ; expects the commission to deploy all legal and non legal tools to ensure legislation is being qualitatively implemented , with no further delay;


### — having regard to the eurosystem staff macroeconomic projections for the euro area published on 10 june 2021 , ### — having regard to the ecb staff macroeconomic projections for the euro area published on 9 september 2021 ,


### b. whereas , according to eurostat , the unemployment rate in july 2021 stood at 6.9 % in the eu and 7.6 % in the euro area , spread in an uneven way across the eu and with unemployment rates among young people and women remaining much higher; ### b. whereas , according to eurostat , the unemployment rate in august 2021 stood at 6.8 % in the eu and 7.5 % in the euro area , spread in an uneven way across the eu and within member states and with unemployment rates among young people and women remaining much higher;


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


### 1. highlights that the statutory independence of the ecb is a prerequisite for it to fulfil its mandate; ### 1. highlights that the statutory independence of the ecb is a prerequisite for it to fulfil its mandate; highlights that central bank independence should always be complemented by a corresponding level of accountability;


### 2. welcomes the ecb monetary policy strategy review adopted unanimously and announced on 8 july 2021 , which sets out how to achieve the primary objective of maintaining price stability and contribute to the achievement of the union’s objectives without prejudice to the objective of price stability; ### 2. welcomes the ecb monetary policy strategy review adopted unanimously and announced on 8 july 2021 , which sets out how to achieve the primary objective of maintaining price stability and contribute to the achievement of the union’s objectives , which include balanced and sustainable economic growth , highly competitive social market economy aiming at full employment and social progress and convergences , and a high level of protection and improvement of the quality of the environment , without prejudice to the objective of price stability;


### 2. welcomes the ecb monetary policy strategy review adopted unanimously and announced on 8 july 2021 , which sets out how to achieve the primary objective of maintaining price stability and contribute to the achievement of the union’s objectives without prejudice to the objective of price stability; ### 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; underlines that sustainable development , convergence , full employment and social progress are general objectives of the union as defined in article 3 of the tfeu;


### 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. 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’ , implying that european and national fiscal policies should continue to aid those households and businesses which were most severely impacted by the pandemic;


### 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; acknowledges the positive impact of this response on the economic situation of the euro area; expects that the ecb will retain its support as long as it is needed; welcomes , moreover , the ecb’s decision to maintain instruments , such as forward guidance , asset purchases and longer-term refinancing operations , as an integral part of its toolkit;


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


### 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. welcomes the ecb’s decision to continue to conduct net asset purchases at a significantly higher pace under the pepp until the covid-19 crisis phase is over and in any case until at least the end of march 2022; welcomes the ecb’s decision to increase the size of the pepp from the initial eur 750 billion to eur 1 ,850 billion; stresses the importance of keeping it in place as long as necessary;


### 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. 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 at a monthly rate of 20 billion eur , ending before it starts raising the key interest rates;


### 12. notes the ecb’s decision on a new symmetric inflation target of 2 % over the medium term and its commitment to maintain a persistently accommodative monetary policy stance in order to meet its inflation target; notes with concern that inflation rose to a decade-high 3 % in august 2021; calls on the ecb to evaluate and address this upward trend and its consequences more attentively; ### 12. notes the ecb’s decision on a new symmetric inflation target of 2 % over the medium term and its commitment to maintain a persistently accommodative monetary policy stance in order to meet its inflation target; believes that the absence of an arithmetic reference complicate the interpretation of the deviations from the target; notes that the medium-term orientation of the monetary policy strategy allows for inevitable short-term deviations of inflation from the target; notes that inflation rose to a decade-high 3 % in august 2021 , driven by temporary factors such as the base effect of energy prices , supply chain bottlenecks and the recovery after a dramatic recession; calls on the ecb to monitor attentively price developments; echoes that , according to the ecb’s survey of professional forecasters , medium-term inflation expectations remain firmly anchored;


### 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; reminds that inflation remained well below the 2% target for several years in the recent past; calls on the ecb to closely monitor these trends 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. notes the ecb’s decision to include the costs related to owner-occupied housing in the hicp; considers , however , that hipc in its current definition reflects the evolution of actual expenditure made by households on goods or services;


### 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. 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 comparable and relevant for households , as housing costs have been continuously rising;


### 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. recalls that , as an eu institution , the ecb is bound by the paris agreement and that this should be reflected in its policies together with adhering to its mandate of supporting general economic policies of the union , specifically in this case the achievement of a climate-neutral economy by 2050;


### 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. 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; welcomes the ecb’s economy-wide climate stress test , which was developed to assess the resilience of banks and corporations to transition and physical risks arising from climate change;


### 18. regrets the fact that green bond issuance in the eu represents only 2.6 % of the eu’s total bond issuance; ### 18. regrets the fact that green bond issuance in the eu represents only 2.6 % of the eu’s total bond issuance , but welcomes the creation of an eu green bond standard as a way to increase the eu's dominance in this market; calls on the ecb to support the eu green bond standard by creating space for their purchase in its asset portfolio;


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


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


### 22. welcomes the ecb’s decision to launch a 24-month investigation phase of a digital euro project; calls on the ecb to effectively address the expectations and concerns raised during the public consultation on a digital euro; ### 22. welcomes the ecb’s decision to launch a 24-month investigation phase of a digital euro project; calls on the ecb to effectively address the expectations and concerns raised during the public consultation on a digital euro which include concerns for privacy , security , usability , low cost and accessibility;


### 23. welcomes the continuous efforts of the ecb to strengthen its response and recovery capabilities in the event of cyberattacks; ### 23. welcomes the continuous efforts of the ecb to strengthen its response and recovery capabilities in the event of cyberattacks in line with a new european cyber defence policy and a european cyber defence act as proposed by the commission;


### 24. calls on the ecb to step up its monitoring of the development of crypto-currencies and the related risks in terms of cybersecurity and money laundering; ### 24. calls on the ecb to step up its monitoring of the development of crypto-currencies and the related risks in terms of cybersecurity , money laundering , terrorism financing and other criminal activities related with the anonymity provided by crypto-assets;


### 24. calls on the ecb to step up its monitoring of the development of crypto-currencies and the related risks in terms of cybersecurity and money laundering; ### 24. calls on the ecb to step up its monitoring of the development of crypto-assets and the related risks in terms of cybersecurity , money laundering terrorism financing and other criminal activities related to the anonymity provided by crypto-assets;


### 26. stresses the need to further enhance the accountability and transparency arrangements of the ecb; recognises the steps taken by the ecb; repeats its call to launch negotiations on a formal interinstitutional agreement; ### 26. stresses the need to further enhance the accountability and transparency arrangements of the ecb; recognises the steps taken by the ecb; repeats its call to launch negotiations on a formal inter-institutional agreement , whilst ensuring the ecb’s independence which goes hand in hand with its accountability;


### 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. 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 and according to paragraph 4 of the european parliament’s resolution of 14 march 2019 on gender balance in eu economic and monetary affairs nominations , in which the european parliament commits itself not to consider shortlists that do not respect the gender balance principle;


### — having regard to articles 113 , 115 and 116 of the treaty on the functioning of the european union , ### — having regard to articles 12 , 45 , 49 , 58 , 63 , 64 , 65 , 113 , 115 and 116 of the treaty on the functioning of the european union ,


### b. whereas high flows of royalty , interest or dividend payments through a certain jurisdiction indicate that profits are being rerouted with the sole purpose of reducing the tax burden; ### b. whereas some member states have very high financial activity , notably passive income , in proportion to the size of the economy , which may be an indication that their legal system is used by multinationals for tax avoidance; whereas high flows of royalty , interest or dividend payments through a certain jurisdiction indicate that profits are being rerouted with the sole purpose of reducing the tax burden;


### 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 and may create market fragmentation , thus representing an obstacle to the development of a proper 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 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; whereas new revelations in 2021 concerning these practices estimate that they have cost 10 governments , including those of germany , spain , france and the us , a total of €141bn;


### 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 137 countries and jurisdictions have supported the g20/oecd inclusive framework agreement on a two-pillar reform; welcomes the european commission's intention to put forward a legislative proposal for the implementation of pillar ii until the end of 2021; believes that the issue of putting a floor to tax competition in the area of passive income is part of the implementation of the international deal on minimum effective taxation;


### 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 137 countries and jurisdictions have supported the g20/oecd inclusive framework agreement on a two-pillar reform; welcomes that all members states committed to such international reform and is convinced this will ease and speed up implementation;


### 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 ensures that all dividend , interest and royalties payments flowing out the eu are taxed at a minimum effective tax rate; recalls its previous demand on the commission to present a legislative proposal for an eu-wide withholding tax in order to ensure that profits generated within the union are taxed at least once before leaving it20c;


### 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 ensures that all dividend , interest and royalties payments flowing out the eu are taxed at a minimum effective tax rate; urges the commission to include strong anti-abuse measures that prevents taxpayers to change their residence to third countries to avoid taxation at the border , by for instances including an exit tax on retained dividends as currently proposed in the dutch parliament;


### 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; urges the council to swiftly resume and conclude the negotiations on the ird and encourages the inclusion an effective minimum tax rate on payments to third countries in the announced directive for the implementation of pillar ii;


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


### 9. recalls that in october 2018 , an investigation disclosed that 11 member states had lost up to eur 55.2 billion in tax revenue as a result of cum-ex and cum-cum schemes; ### 9. recalls that in october 2018 , an investigation disclosed that 11 member states had lost up to eur 55.2 billion in tax revenue as a result of cum-ex and cum-cum schemes , but that new estimates set the amount of loss of public revenue at much higher numbers , with these schemes continuing to take place;


### 10. welcomes the inquiry and final report by the european securities and markets authority into cum-ex , cum-cum and withholding tax reclaim schemes , as requested by parliament; calls on the commission to propose measures to link tax reclaims to the underlying distribution of dividends , or to entrust a single entity with responsibility for collecting the withholding tax and issuing the relevant certificate; ### 10. welcomes the inquiry and final report by the european securities and markets authority into cum-ex , cum-cum and withholding tax reclaim schemes , as requested by parliament; calls on the commission to propose measures to link tax reclaims to the underlying distribution of dividends , notably through a unique identifier , and/or by entrusting a single entity in each member state with responsibility for collecting the withholding tax and issuing the relevant tax certificate to ensure that multiple tax reclaims over a single distribution cannot take place and that abuse of reclaim procedures is easily detected by tax administrations;


### 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 propose measures 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; calls on the commission , in particular , to propose legislation removing the current legal limitations for exchange of information between financial market supervisory authorities and tax authorities which was obtained through cooperation with other authorities within the eu , and to provide a legal basis for financial market supervisory authorities to exchange relevant information with tax authorities , notably to flag suspicious activities;


### 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 (dac 6) introduced mandatory disclosure rules for cross-border arrangements , creating 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;


### 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; highlights that such harmonisation would be particularly helpful for retail investors , who are often deterred from completing refund procedures due to excessive burden caused by said discrepancies , thus improving the level playing field;


### 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. reckons that repayments of withholding taxes remain predominantly a paper driven process , which is not only slower and more burdensome for taxpayers , but also more prone to fraud; notes that digitalising these procedures and improving cooperation between national tax administrations could reduce the administrative burden and uncertainty in cross-border investments;


### 17. takes note of the option to establish an eu system for relief at source; highlights that a move towards this type of system cannot be detrimental to the fight against tax abuse; stresses that , in all circumstances , compliance by the destination state with the agreement reached by the g20/oecd inclusive framework must be a prerequisite for relief at source; ### 17. takes note of the option to establish an eu system for relief at source; highlights that a move towards this type of system cannot be detrimental to the fight against tax abuse; stresses that , in all circumstances , compliance by the destination state with the agreement reached by the g20/oecd inclusive framework , or with the equivalent eu legislation implementing said agreement , must be a prerequisite for relief at source;


### (2) in the past years , the commission has been monitoring the application and , in 2019 , completed an evaluation of directive 2011/16/eu22. while significant improvements have been made in the field of automatic exchange of information , there is still a need to improve existing provisions that relate to all forms of exchanges of information and administrative cooperation. ### (2) in the past years , the commission has been monitoring the application and , in 2019 , completed an evaluation of directive 2011/16/eu22. while significant improvements have been made in the field of automatic exchange of information , there is still a need to improve existing provisions that relate to all forms of exchanges of information and administrative cooperation. in order to take into account the evolution of the situation with regard to tax transparency , this directive might need to be regularly updated.