Key takeaways from the ETAF Conference “The new Single Market Strategy for services: From words to actions – What comes next?”
On 9 December 2025, ETAF co-hosted together with MEP Maria Grapini (S&D) a conference on the theme “The new Single Market Strategy for services: From words to actions – What comes next?” in the European Parliament in Brussels. During the panel discussion moderated by Léa Marchal (Deputy editor-in-chief, Agence Europe), representatives from the European Parliament, the European Commission as well as from the tax profession explored the chances and challenges of a said initiative. MEP Maria Grapini, Vice-President of the IMCO Committee, emphasised the Parliament’s commitment to ensure that new legislative initiatives improve the functioning of the Single Market without undermining well-functioning national systems. Mehdi Hocine, Head of Unit “Services Strategy and Mutual Recognition” at DG GROW, presented the Commission’s perspective. He explained why the recognition of professional qualifications and restrictive national service regulations feature prominently among the “Terrible Ten” barriers identified by the Commission. Accelerating qualification recognition, improving mutual trust among national systems and enabling providers certified in one Member State to operate in others without additional authorisation are central pillars of the upcoming legislative agenda. Michael Schick, ETAF Head of Office, underlined that tax advisory professions vary considerably across Member States and that robust regulation is indispensable to guarantee quality, independence and consumer protection. Lowering standards for the sake of mobility could lead to costly mistakes for taxpayers and public budgets. At the same time, he acknowledged the need for pragmatic solutions to improve mobility where possible. Salvador Marín, President of EFAA for SMEs, highlighted that the existing EU framework for accountants demonstrates that minimum requirements at EU level can facilitate mobility when designed with quality safeguards in mind. He called for balanced reforms that support SMEs while preserving professional standards. Both policymakers and practitioners agreed that reforms must safeguard high professional standards and consider the complexity of 27 different tax systems. In his concluding remarks, ETAF President Philippe Arraou underlined the importance of dialogue and collaboration between all stakeholders.
European Commission releases report on tax gaps
On 11 December 2025, the European Commission released the Mind the Gap report which offers a comprehensive assessment of challenges and opportunities for tax compliance and tax expenditures in the EU. The report distinguishes between tax gaps that emerge due to taxpayer non-compliance, such as tax evasion and avoidance, and policy choices – namely tax expenditures, such as tax reliefs or concessions. It highlights the benefits of reducing tax compliance gaps, including fostering fairer tax systems and sounder public finances. Furthermore, the report stresses the need for regular and transparent reporting on, and evaluation of tax expenditures to ensure that they remain cost effective, targeted and proportionate. The report also emphasises the importance of enabling factors to reduce the tax compliance gaps, notably the ongoing digital transformation in Member States and the need for effective mechanisms for tax collection, recovery and administrative cooperation. Providing a way forward, the report encourages Member States to build up estimation capacities, to check whether tax expenditures serve their purpose and deliver value for money, and to make better use of modern tools to fight compliance gaps.
European Commission’s December tax infringement decisions
On 11 December 2025, the European Commission launched several tax infringement actions. Luxembourg received a formal notice for failing to abolish a tax regime that discriminates dividends derived from public investments by other EU and EEA Member States, as well as their public entities. The dividends distributed by companies established in Luxembourg to the State of Luxembourg and its public entities are exempt from a withholding tax of 15 %, unlike dividends distributed to other Member States of the EU and the EEA and their public entities, which are subject to the withholding tax. Five countries – Czechia, Ireland, France, Austria, and Portugal – received reasoned opinions for failing to transmit customs data to the Commission through the SURV3 system. This affects the EU's ability to track trade and enforce customs rules properly. Finally, Czechia, Greece, and Slovakia also received reasoned opinions for not fully setting up the National Import System or the Temporary Storage system as required by the Union Customs Code. All countries now have two months to respond to the Commission and take the necessary measures.
FISC Subcommittee holds public hearing on “Taxation of Ultra-high-net-worth individuals”
On 11 December 2025, from 10:30 to 12:30, the FISC Subcommittee held a public hearing on “Taxation of Ultra-high-net-worth individuals”. As guests the Subcommittee invited Dr Benjamin Angel (DG TAXUD); Dr Kurt Van Dender, (OECD); Prof. Dr Gabriel Zucman, (European Tax Observatory); and Dr Michael Christl, (Tax Foundation Europe), to discuss the taxation of ultra-high-net-worth individuals (UHNWIs). The hearing addressed concerns about fairness and the need for tax policies that support equitable growth. Gabriel Zucman of the EU Tax Observatory presented his organisation’s idea of a minimum tax on extreme wealth which, he said, could net 67 billion euro annually if EU citizens with more than 100 million euro were taxed at 2%. Michael Christl of the Tax Foundation Europe on the other hand said that new taxes on wealthy people would lead to disinvestment and capital flight. Instead, he called for making the tax system more efficient and transparent. Pasquale Tridico, the Chair of the subcommittee, said “The EU urgently needs uniform and equitable tax rules that foster sustainable growth and strengthen competitiveness. For this reason, I reiterate the call on the European Commission to present a legislative proposal to confront this pressing issue.”
Outcomes of the ECOFIN Council on 12 December
On 12 December 2025, the EU Finance Ministers held their last meeting for the year 2025. The Council exchanged views on the Commission’s alert mechanism report, draft euro area recommendation, and report on the excessive deficit procedure, which had been published on 25 November as part of the 2026 European semester autumn package. Ministers also exchanged views on the economic consequences of EU legislation in view of draft Council conclusions on the topic. The Council held a policy debate to pave the way for adopting its position on the single currency package. The package included the legal framework for the initiative to introduce a digital euro and a regulation addressing the legal tender status of euro cash. Furthermore, Ministers discussed implementing decisions approving modified recovery and resilience plans, which had been submitted by Member States. Regarding taxation, the Council approved the bi-annual ECOFIN report on tax issues. Ministers also adopted conclusions on the progress achieved by the Code of Conduct Group. Lastly, the president of the European Court of Auditors, Tony Murphy, presented the Court’s annual report on the implementation of the EU budget for the financial year 2024, which had been published on 9 October 2025.
The next edition of the ETAF Weekly Tax News will be published on 12 January 2026.
