The Financial Secretary to the Treasury (Mr David Gauke)
A meeting of the Economic and Financial Affairs Council took place in Luxembourg on 17 June 2016. EU Finance Ministers discussed the following items:
Anti-tax avoidance directive
The Council reached political agreement to the anti-tax avoidance directive.
Financial transaction tax
A brief update was provided on the progress regarding implementing a financial transaction tax in participating member states. The UK is not taking part in the financial transaction tax.
Strengthening the banking union
Council conclusions were agreed on measures to strengthen the banking union.
Current legislative proposals
The presidency updated the Council on the state of play regarding a number of financial services dossiers.
State of play of the banking union
Belgium provided an update on its transposition of the bank resolution and recovery directive and the deposit guarantee scheme directive as the only remaining member state yet to complete this.
Analysis by the Commission on temporary VAT derogations (reverse charge mechanism)
The Commission agreed to bring forward a legislative proposal to allow certain member states to apply a generalised reversal of liability for VAT payments.
Implementation of the stability and growth pact
The Council endorsed decisions to close the excessive deficit procedures for Cyprus, Ireland and Slovenia.
Report of the European Court of Auditors on the excessive deficit procedure
The Council adopted conclusions on a report of the European Court of Auditors regarding the excessive deficit procedure. This item moved to an “A” point with no discussion.
Contribution to the European Council meeting on 28-29 June 2016
The Council prepared a number of items ahead of June European Council. Specifically, Ministers endorsed the 2016 country specific recommendations, part of the European semester process.
Following this, views were exchanged on a number of issues including economic and fiscal governance and the investment plan for Europe. The item on national productivity boards moved to an “A” point with no discussion.
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