Growth-friendly tax policies in Member States and better tax coordination in the EU.

Abstract

For the first time this report on "Growth friendly tax policies in Member States and better tax coordination" forms part of the Commission package to launch the European Semester 2012. The present report also follows-up on the European Council conclusions of 24 June 2011 which asked the Commission to report back by December 2011 on progress made in the structured discussions on tax policy issues in the context of the 'Euro Plus Pact' (1), notably to ensure the "exchanges of best practices, avoidance of harmful practices, and proposals to fight fraud and tax evasion." As a key input to the strengthened economic guidance, it should further pave the way for tax cooperation to develop more efficient tax systems in order to emerge from the crisis in a better and faster way. Elaborating the essential messages contained in the Annual Growth Survey, the report should also support the Member States to deepen their structured discussions on tax policy coordination, in a consistent and efficient way, in coherence with the recommendations defined or to be defined in the context of the European Semester (2) and the objectives of the Europe 2020 strategy.