Economic and Financial Affairs Council, 12/02/2016, 12 February 2016

Main results

Terrorist financing

The Council set out its priorities as efforts are strengthened to prevent the financing of terrorism.

This follows publication by the Commission of an action plan to overcome current challenges, and in response to recent terrorist attacks. The plan builds on existing EU rules and practices, adapting them to new threats and in line with international standards.

"We committed to proceeding swiftly with implementation of a number of measures set out in the action plan", said Jeroen Dijsselbloem, minister for finance of the Netherlands and president of the Council. "We agreed to some steps that go beyond the action plan, such as accelerated implementation of the money laundering directive and further improving cooperation between national authorities responsible for clamping down on terrorist financing." 

In its conclusions, the Council specifies in detail a number of initiatives to be taken, setting deadlines for action. These include:

• the field of virtual currencies;
• strengthening access to information by financial intelligence units (FIUs), such as bank and  payment account information;
• appropriate measures on prepaid payment instruments:
• measures against illicit cash movements.

We are hopeful that this ambitious timetable will confirm the EU as a front-runner in implementing last year's OECD conclusions on tax base erosion and profit shifting. Jeroen Dijsselbloem, minister for finance of the Netherlands and president of the Council

Tax avoidance

The Council held a first discussion on a package of proposals aimed at strengthening EU rules to prevent corporate tax avoidance.

The package is intended as a coordinated response to aggressive tax practices deployed by large companies. It also sets out to implement standards approved by the OECD.

The presidency has set an ambitious timetable for work on the package. It foresees political agreement before June 2016 on:

• a proposal to boost the exchange of tax-related information on the activities of multinational companies;
• proposed rules to tackle some of the most prevalent tax avoidance practices.

Work will be taken in phases, the ambition being to reach an agreement on the first directive in March and to move as rapidly as possible on the other elements.

EU budget issues

The Council set its priorities for the 2017 EU budget, calling for a realistic budget that strikes the right balance between fiscal consolidation and investments to boost growth. Ministers also asked that the EU budget for 2017 remain flexible enough to cope with current and possible future challenges.

The Council recommended to the European Parliament to grant discharge to the Commission for the implementation of the 2014 EU budget. It was also updated by Mario Monti, the chair of the high-level group on own resources, on the group's work. An interinstitutional conference including participation from all national parliaments is scheduled to take place in Brussels on 13-14 June 2016. The high-level group's task is to undertake a general review of the EU's system of own resources to improve simplicity, transparency, equity and democratic accountability.