Economic and Financial Affairs Council, 17/06/2016, 17 June 2016

Main results 

Corporate tax avoidance

The Council reached broad agreement on a draft directive addressing corporate tax avoidance, subject to a silence procedure that will end at midnight on 20 June 2016.

The draft directive builds on 2015 OECD recommendations to address tax base erosion and profit shifting (BEPS). It addresses situations where corporate groups take advantage of disparities between national tax systems in order to reduce their tax liability.

If the agreement is confirmed, the directive will be subsequently submitted to the Council for adoption.

"It is very important that the EU is at the forefront of the fight against tax avoidance, and we took an important step today", said Jeroen Dijsselbloem, minister for finance of the Netherlands and president of the Council. "The aim is to ensure a coherent implementation of the OECD BEPS action plan, and to transpose that plan into hard law applicable throughout the EU."

Strengthening banking union

The Council agreed on a 'roadmap' for further work to complete the EU's banking union.

The roadmap sets out priorities and milestones for the coming years, in terms of both sharing risks and reducing risks in the banking sector and addressing outstanding challenges.

Work will be conducted in three main areas:

• a European deposit insurance scheme (EDIS);
• a common backstop to the single resolution fund;
• bank regulations with a view to reducing risks.

"The outcome should be a more resilient banking union, reinforcing financial stability in the euro area and the EU as a whole", Mr Dijsselbloem said. "Expectations are high, as the banking union is one of the big successes of the EU, having made an essential contribution to rebuilding confidence."

The Council's conclusions provide guidance on the sequencing of risk reduction measures, the common backstop and EDIS.

• Banking union (background information)

Deficits, economic policies, capital markets union, money market funds

The Council closed excessive deficit procedures for Cyprus, Ireland and Slovenia.

It approved country-specific recommendations to the member states on their economic and fiscal policies.

The Council agreed an agreement on prospectus rules for the issuing and offering of securities, part of broader plans for a capital markets union.

It also agreed draft rules on money market funds, aimed at making such products more robust.

Live streaming, videos and photos

• Live streaming of public sessions and press events
• Photos and videos from the meeting, Economic and Financial Affairs Council, 17 June 2016