Sunday

24th Oct 2021

EU states loosen grip on tax havens

  • Panama City. Panama is now off the EU blacklist of tax havens (Photo: Falco Ermert)

EU finance ministers removed on Tuesday (23 January) eight 'entities' - countries and territories - from the tax havens blacklist, while ruling out more transparency or sanctions.

Barbados, Grenada, South Korea, Macao, Mongolia, Panama, Tunisia and the United Arab Emirates were taken from the list of 17 "non-cooperative" countries and jurisdictions that was only established in December.



Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

They were added to a 'grey' list of some 50 jurisdictions that have pledged to change their legislation on taxation but have still to take and implement measures.

EU ministers considered that the eight entities have made sufficient commitments to address "deficiencies identified by the EU" when it established the black list.

"Our listing process is already proving its worth," said Bulgaria's minister Vladislav Goranov, whose country chairs the council of ministers.

While some officials considered that the move was premature, Goranov added that "the main task will be to ensure those jurisdictions implement the efforts they have committed to."

He insisted that the EU's aim was to make offshore tax schemes "a thing of the past."

Oxfam, which published a report on tax havens in November, regretted that the EU was "undermining" its own process.

"The EU is rushing to take countries off the blacklist without it being clear what they have actually committed to improve," said the NGO's Aurore Chardonnet.

Markus Ferber, a German MEP from the centre-right EPP group, called the decision "a confession of failure."

"Instead of crossing jurisdictions off the list, finance ministers should have improved the list by imposing sanctions on those countries on the list," he said.



But possible sanctions, which have also been demanded by EU tax commissioner Pierre Moscovici, as well as by countries like France and the Netherlands, were not discussed by ministers.

The EU expects the grey list countries and territories to meet their commitments by the end of the year.

"They have to follow through their commitment or may end up back on the black list," commission vice-president Valdis Dombrovskis warned.


No deadlines

But Goranov, speaking as coordinator of the ministers' work, insisted that there should not be "fixed deadlines for updating the list."

"There should be a very interactive and repetitive procedure," he said. "Anytime it is decided that someone needs to be encouraged or dissuaded, the mechanism should be triggered without fixing deadlines."

The EU finance chiefs also rejected the EU commission's demand to publish the letters in which tax havens commit to changes their legislations, in the name of transparency and accountability.

Goranov said that the EU may only ask the jurisdictions if they are willing to make their commitments public.

He explained that it would be "unfair" to publish them without their permission, because the EU required commitments "without telling them these commitments would be revealed."

EU blacklists 17 tax havens, avoids sanctions

Finance ministers pointed out 'non-cooperative' entities and set up a second 'grey' list of more than 40 countries that have promised to improve their tax practices.

MEPs ponder how to fight tax havens

After the Paradise Papers brought new revelations about tax dodging across the globe, including in the EU, the European Parliament wonders how to step up the fight.

Firms in EU tax havens cannot be denied Covid bailouts

Denmark, France and Poland are refusing to provide bailouts to companies that are registered in tax havens like Panama. But campaigners point out that the EU's Luxembourg and Netherlands are also home to firms avoiding paying billions into national coffers.

News in Brief

  1. Russia's anti-vax campaign backfired, EU says
  2. China angered as MEPs call for Taiwan talks
  3. Emissions from La Palma volcano reach Brussels
  4. Body of eighth victim of Belarus border-crisis found in river
  5. Report: Syrian bank fiddling currency to evade EU sanctions
  6. Nato adopts plan to counter new Russian threats
  7. Alleged killer of British MP 'felt affiliated' to IS
  8. Coronavirus: Belgium returns to 'red' zone

Vietnam jails journalist critical of EU trade deal

A journalist who had demanded the EU postpone its trade deal with Vietnam until human rights improved has been sentenced to 15 years in jail. The EU Commission says it first needs to conduct a detailed analysis before responding.

Stakeholders' Highlights

  1. Nordic Council of MinistersNew report reveals bad environmental habits
  2. Nordic Council of MinistersImproving the integration of young refugees
  3. Nordic Council of MinistersNATO Secretary General guest at the Session of the Nordic Council
  4. Nordic Council of MinistersCan you love whoever you want in care homes?
  5. Nordic Council of MinistersNineteen demands by Nordic young people to save biodiversity
  6. Nordic Council of MinistersSustainable public procurement is an effective way to achieve global goals

Latest News

  1. EU states want more Belarus sanctions
  2. Gas price spike exposes rift at EU summit
  3. Poland vows not to give into EU 'blackmail' at summit
  4. EU vows to uphold Paris climate ambition amid scientists' fears
  5. Commissions's new migration pact still seeking 'landing zone'
  6. Europe can't ignore Chinese encroachment in Ukraine
  7. Lithuania - where 'biodiversity funding' is cutting down trees
  8. Dutch lawyers take Frontex to EU court over pushbacks

Join EUobserver

Support quality EU news

Join us