HKPS becomes a full ETAF member
The Croatian Chamber of Tax Advisers (HKPS) has officially become a full member of the European Tax Adviser Federation as of 1 July 2025. This decision follows a two-year period during which HKPS held an observer status and actively engaged in ETAF activities. Founded in November 2011 and based in Zagreb, HKPS represents the regulated profession of tax advisers in Croatia. With its solid legal framework and professional structure, HKPS fully meets all the criteria for full ETAF membership. In recognition of this, the ETAF Board unanimously approved HKPS's application on 8 July 2025. “We are delighted to welcome the Croatian Chamber of Tax Advisers as a full member of ETAF”, ETAF President Philippe Arraou said following the decision. “HKPS has shown great commitment to the values and objectives of our Federation over the past two years as an observer. Its full membership is a natural step forward and a valuable addition to our collective voice at the European level. Together, we will continue to promote high standards in the tax profession and work towards fair and balanced tax legislation in Europe”, he added. The full membership of HKPS marks another milestone in ETAF’s mission to unify and strengthen the voice of regulated tax professionals within the European Union. The ETAF Board and all its members look forward to a close and fruitful collaboration with HKPS in the years ahead.
EU ready to retaliate after new US tariffs
European Commission President Ursula von der Leyen said on Sunday 13 July that the EU stands ready to retaliate after the US President Donald Trump threatened on Friday to impose 30 percent tariffs on EU products starting on 1 August. Speaking at a press conference, Ms von der Leyen said negotiations with Washington were underway. “We will therefore also extend the suspension of our countermeasures till early August and at the same time we will continue to prepare further countermeasures so we are always prepared”, she reportedly said. “We will take all necessary steps to safeguard EU interests”, she added.Imposing 30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic, Ms von der Leyen emphasized in a press statement published on Saturday 12 July. President Donald Trump has already warned that any retaliation measures will be met with additional US tariffs. EU Trade Ministers are due to discuss the matter in Brussels on Monday 14 July.
European Commission launches consultation on a "28th regime" for innovative companies
To strengthen the Single Market and support innovative businesses, the European Commission is preparing a proposal for a European 28th regime – an EU-wide, optional corporate legal framework. It would offer a harmonized legal option for companies operating across borders and complement existing national company laws. The aim of this new legal framework is to “simplify applicable rules and reduce the cost of failure, by addressing specific aspects within relevant areas of law, including insolvency, labour and tax law". The 28th regime seeks to make cross-border business operations easier, especially for start-ups and scale-ups, by promoting the use of online procedures and digital tools. The 28th regime was announced in the Competitiveness Compass, as well as in the Single Market and the Start-up and scale-up Strategies. To prepare this initiative DG JUST launched a call for evidence on Wednesday 9 July. Companies, business associations, legal professionals, public authorities and other stakeholders are invited to give feedback until 30 September 2025. The public consultation can be found here.
EU Commission under Ursula von der Leyen survives no-confidence vote amid ongoing political challenges
On Thursday 10 July, the European Commission led by President Ursula von der Leyen successfully survived a no-confidence vote in the European Parliament. The motion, initiated by 77 Members of the European Parliament from right-wing parties such as AfD, Rassemblement National, and Lega, was rejected with 360 votes against, 175 in favor, and 18 abstentions. The no-confidence motion criticised the Commission primarily for its perceived lack of transparency in the procurement of COVID-19 vaccines and for its management of pandemic relief funds. President von der Leyen was absent from the vote as she participated in an international conference in Rome. Despite the Commission’s survival, political tensions remain high within the Parliament. Members from the Social Democratic and Liberal groups accuse the European People’s Party (EPP) of aligning increasingly with right-wing forces, which they warn could undermine confidence in the Commission’s leadership and its policy agenda. The decision comes at a critical time as the Commission prepares for key upcoming events, including the EU budget negotiations and the annual “State of the Union” speech by President von der Leyen. These moments will be decisive in setting the political tone and priorities for the Commission’s remaining term, especially concerning regulatory policies, economic recovery efforts, and ongoing tax reforms across the EU. The outcome of this vote reflects the complex political landscape in the EU institutions, highlighting ongoing debates about transparency, governance, and the future direction of European integration.
EU Finance Ministers met on 8 July in Brussels
On Tuesday 8 July, EU Finance Ministers met in Brussels for the first time under the Danish Presidency. Ministers adopted the final three legal acts which pave the way for Bulgaria to introduce the Euro on 1 January 2026. They also activated the national escape clause under the Stability and Growth Pact (SGP) for 15 Member States to help facilitate their transition to higher defence spending at the national level, while ensuring debt sustainability. Furthermore, the Ministers held a policy debate on the single currency package and exchanged views on the Commission’s recent proposal to review the EU’s securitisation framework. Finally, a new excessive deficit procedure (EDP) concerning Austria was opened and Romania’s net expenditure path in view of its lack of effective action under its EDP – originally opened in 2020 – was revised. No tax matter was discussed at this ECOFIN meeting.
EU Tax Observatory publishes study on the distribution of profit shifting
A recent July working paper titled “The Distribution of Profit Shifting” from the EU Tax Observatory sheds new light on the extent and distribution of profit shifting by multinational enterprises (MNEs), offering key insights into the effectiveness of the Global Minimum Tax (GMT). The research, based on German administrative data, estimates that German MNEs shifted approximately EUR 19 billion to tax havens in 2022. The study finds an exponential pattern of profits shifted across the group-size distribution with the GMT covering less than 30% of MNE groups but 95% of all profits shifted. Furthermore, the authors relate revenue potential from taxing excess profits in low-tax jurisdictions to compliance costs of the GMT, using a 15% benchmark rate. For groups currently covered by the GMT, revenue gains significantly dominate costs, while extending coverage to additional groups yields only modest net gains. The results of the study support policy consistency of the GMT in the face of recent unilateral challenges.
