Finance ministers discuss tackling tax fraud and responses to the consequences of the war in the Middle East

SLOVENIA, May 5 - Last November, the European Commission proposed an amendment to the regulation that would enable the European Public Prosecutor’s Office (EPPO) and the European Anti-Fraud Office (OLAF) to have centralised access to VAT information at the EU level. The aim is to improve the fight against cross-border VAT fraud, eliminate legal ambiguities and strengthen cooperation between institutions. Member States support the proposal in principle but emphasise the need for legal certainty, proportionality and the protection of personal data. 

One of the central topics at both the Eurogroup and the Council meeting was the response to the economic consequences of the war in the Middle East for the EU. Representatives of the European Commission and the International Monetary Fund (IMF) called for measures that are as targeted as possible, aimed at supporting households and businesses in coping with high energy prices. The ministers also held an orientation debate on the market integration and supervision package, which is a key part of the savings and investment union. The goals are to increase the EU’s competitiveness, improve businesses’ access to capital, expand investment opportunities and promote the cross-border provision of financial services. Slovenia supports the goals of greater integration but emphasises the need for thorough impact analyses. In this regard, we advocate simplifying the cross-border fund distribution and modernising the rules, harmonising trading and settlement with appropriate safeguards (especially for smaller markets), strengthening supervision and enhancing the role of the European Securities and Markets Authority (ESMA) for cross-border significant entities, along with balanced governance of ESMA through the involvement of national authorities.

The ministers also discussed the impact of EU legislation on the economy. The debate focused on balancing administrative costs with the benefits of simplifications, with legislative simplification remaining a key priority. It is important to clearly assess the costs and benefits of legislative proposals. The Commission also presented the state of play regarding the implementation of the Recovery and Resilience Facility, and ministers continued their regular discussion of the economic and financial consequences of the war in Ukraine.

The day before, the Eurogroup met, where ministers from euro area countries reviewed the broader economic situation in the euro area, including a summary of discussions from recent international meetings and the state of play regarding the banking union.