EU Finance Ministers meet in Luxembourg on 20 June
EU Finance Ministers will meet on Friday 20 June in Luxembourg for the last time under the Polish Presidency of the Council of the EU. According to the agenda, the ECOFIN Council will exchange views on the 2025 European Semester Spring package and hold a policy debate reflecting on how to lower energy prices in the EU. Ministers will also exchange views on the state of play of the economic and financial impact of Russia’s aggression against Ukraine. Finally, the Presidency will present the progress achieved on the Customs Union reform package and Ministers will be invited to approve the traditional report to the European Council on tax issues as well as conclusions on the progress achieved by the Code of Conduct Group during the Polish presidency. The ECOFIN Council will also take note, without discussion, of a Polish Presidency progress report on the revision of the Energy Taxation Directive.
European Commission consults on the tax treatment of savings and investment accounts
The European Commission opened on Tuesday 10 June a public consultation on its future Recommendation on savings and investment accounts, including on their tax treatment, scheduled to be published in Q3 2025. This initiative was announced in the Savings and Investments Union Strategy published on 19 March 2025 and aims at facilitating retail investors participation in capital markets across the EU based on existing best practices. According to the Commission, the most successful examples are savings and investment accounts that are easy to use, designed with a digital interface, give access to a wide range of investment products, offer preferential tax treatment and/or simplified tax compliance and allow a change of provider for no or low cost. Stakeholders are in particular invited to provide inputs on the tax simplification and tax advantages that could be granted to these accounts. The public consultation is open until 8 July 2025.
European Commission updates its AML blacklist
On Tuesday 10 June, the European Commission updated its list of high-risk jurisdictions presenting strategic deficiencies in their national anti-money laundering and countering the financing of terrorism (AML/CFT) regimes. Algeria, Angola, Côte d'Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela were added to the list, while Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda, and the United Arab Emirates were delisted. EU entities covered by the AML framework are required to apply enhanced vigilance in transactions involving these countries. The updated list takes into account the work of the Financial Action Task Force (FATF) and in particular its list of “Jurisdictions under Increased Monitoring”, the Commission said. In April 2024, the European Parliament rejected an update proposal, expressing concerns about the removal of the United Arab Emirates from the list. “The Commission has carefully considered the concerns expressed regarding its previous proposal and conducted a thorough technical assessment, based on specific criteria and a well-defined methodology, incorporating information collected through the FATF, bilateral dialogues and on-site visits to the jurisdictions in question”, the Commission stated. The update of the list takes the legal form of a delegated regulation, which will enter into force after scrutiny and non-objection of the European Parliament and the Council within a period of one month, which can be prolonged for another month.
Form and scope of the 28th regime proposal not yet determined, European Commission says
In a written answer to a question from MEP Oihane Agirregoitia Martínez (Renew Europe, Spain) on Tuesday 10 June, Justice European Commissioner Michael McGrath clarified that the 28th regime, announced in the Competitiveness Compass, would include an EU corporate legal framework, based on digital-by-default solutions, and would help companies overcome barriers in setting up, scaling up and operating companies across the Single Market. “Such a 28th regime would offer companies a choice to carry out their activities across the Single Market through an EU-wide legal status. It is to be determined whether the proposal would be adopted as a European legal form or whether a new harmonised national legal form for companies would be more appropriate”, he said. However, in both cases, these rules would apply in all Member States and company founders would have a choice whether to adopt a legal form under the 28th regime or whether to adopt an existing national legal form, he further stated. While the Commission previously said on several occasions that the 28th regime proposal will include aspects of corporate, insolvency, labour and tax law, Commissioner McGrath said that “whether and what tax law elements could be included remains to be determined”. The public consultation on the 28th regime will be launched before the summer 2025 and the proposal is planned to be adopted in the first quarter of 2026.
FISC study on the taxation of the EU’s financial sector
A study commissioned by the European Parliament’s FISC Subcommittee, published on Wednesday 11 June, maps the diverse landscape of financial sector taxation across EU Member States, highlighting inconsistencies that hinder progress toward a unified Capital Markets Union (CMU). The report focuses on taxes such as financial transaction taxes (FTTs), bank levies, VAT exemptions, corporate income tax (CIT), windfall taxes and bonus taxes, showing how their varying structures, rates and purposes contribute to market fragmentation, increased compliance costs and reduced cross-border activity. According to the authors, while some taxes like FTTs generate stable revenue with limited distortion, others such as bank levies or windfall taxes vary widely and may be passed on to consumers, adding further complexity. Differences in CIT, windfall profit taxes, and profit shifting further exacerbate cross-border tax avoidance and inconsistencies, in their view. The study concludes that while financial taxes have limited potential to fix market imperfections, they can serve as revenue tools if coordinated. The authors recommend EU-level reforms for harmonisation, enhanced transparency, sunset clauses for temporary taxes and targeted coordination to support the Capital Markets Union (CMU).
FISC study on tax barriers to cross-border mobility of workers
A study commissioned by the European Parliament’s FISC Subcommittee, published on Thursday 12 June, concludes that tax fragmentation across the EU significantly hinders cross-border worker mobility, distorting the Internal Market and generating varying compliance costs depending on firm size, industry and country. The interdisciplinary report shows that legal, business and economic disparities in tax treatment discourage both workers from relocating and employers from hiring across borders, especially affecting frontier workers, small businesses and sectors like construction. It highlights how tax differentials influence workers' choice of host countries, with examples like Belgium being favourable for low-income earners and Bulgaria for high-income ones. The study calls for coordinated tax residence definitions, harmonisation of exit taxes, strict simplification of compliance requirements and bilateral solutions like the Sweden-Denmark Öresund model to remove tax barriers. It recommends exclusive taxing rights for the state of residence in most cross-border cases, particularly for frontier and mobile workers, alongside tailored approaches for remote workers and digital nomads to support a more integrated EU labour market.
