Economic and Financial Affairs Council, 25/05/2018, 25 May 2018

Main results

The Council agreed its stance on proposals to reduce risk in the banking industry, strengthening rules on capital requirements and on bank recovery and resolution.

• Banking: Council agreement on measures to reduce risk (press release, 25/05/2018)

Implementing reforms agreed at international level, the proposals are aimed at ensuring that any outstanding challenges to financial stability are correctly addressed.

Based on the progress achieved on risk reduction, ministers reiterated their commitment to progress on all components, including on risk sharing, cited in the Council's 'roadmap' on banking union. Decisions to advance on the backstop to the EU's single resolution fund will be taken in June 2018.

“The agreement on the banking package today will enable us to make progress on other elements of the banking union”, said Vladislav Goranov, minister for finance of Bulgaria, which currently holds the Council presidency.

“Today’s agreement will send a positive signal to the market. We hope therefore that the European Parliament will be able shortly to start negotiations, allowing us to agree these proposals and enact them as soon as possible”, he said.

The Council adopted rules aimed at boosting transparency to prevent aggressive cross-border tax planning.

• Corporate tax avoidance: Transparency rules adopted for tax intermediaries (press release, 25/05/2018)

The directive targets intermediaries such as tax advisors, accountants and lawyers that design and/or promote tax planning schemes. It will require them to report schemes that are potentially aggressive.

"The new rules are a key part of our strategy to combat corporate tax avoidance ", Mr Goranov said. “With greater transparency, risks will be detected at an earlier stage and measures taken to close down loopholes before revenue is lost."

Ministers also agreed to remove the Bahamas and Saint Kitts and Nevis from the EU's list of non-cooperative jurisdictions, in the light of commitments made at a high political level to remedy EU concerns.

• Taxation: EU list of non-cooperative jurisdictions (background information)
• Taxation: 2 jurisdictions removed from EU list of non-cooperative jurisdictions (press release, 25/05/2018)

Implementation of their commitments will be carefully monitored.

Established in December 2017, the EU's list is contributing to on-going efforts to prevent tax fraud and promote good governance worldwide.