Progressive ministers look forward to greater tax transparency from large multinationals in the European Union, as the deadline for transposition into national law of the Public Country-by-Country Reporting Directive nears. Party of European Socialists (PES) ministers responsible for the internal market and industry welcomed the milestone in the fight against tax evasion and fraud as they met in Brussels, Belgium, today.
Government ministers from the PES family met in-person at the headquarters of the PES and online ahead of the EU Competitiveness Council (COMPET), which takes place later this morning. On the agenda for the PES hybrid meeting, the transposition of the Public Country-by-Country Reporting Directive, Ecodesign Regulation and the green and digital transition.
Chair of the PES COMPET ministers’ network, Belgian Deputy Prime Minister and Minister for Economy and Employment Pierre-Yves Dermagne, said:
“Large multinationals must pay their fair share of tax. Thanks to social democrats, that is happening in Europe. Our PES network of COMPET ministers was launched in 2021 precisely to address the Public Country by Country Reporting Directive. It is a huge achievement for our political family that we were able to pass this measure.
“Information on where companies generate revenue and where they pay tax is crucial to the grassroots fight against aggressive tax planning, giving politicians, civil society organisations and ordinary citizens the tools to shine a spotlight on unfair corporate practices.”
The Directive, spearheaded by Commissioner for Economy Paolo Gentiloni, requires large multinational companies located in the EU, or which operate in the EU, to report key company information such as where they generate revenue and where they pay tax.
The meeting also exchanged on the proposal for a Regulation on Ecodesign for Sustainable Products. Thanks to the leadership of European Commission Executive Vice President Frans Timmermans, the Commission put forward the package last year to make products in the EU more sustainable and promote the shift towards a circular economy. The PES strongly supports these and other measures to make Europe most sustainable.
In the context of the Critical Raw Materials Act, ministers also exchanged on the importance of preserving social and environmental standards throughout the supply chains while developing EU resilience and autonomy.
The meeting was attended by:
- Pierre-Yves Dermagne, Ministerial Chair, Deputy Prime Minister and Minister of Economy and Employment, Belgium
- Franz Fayot, Minister of the Economy, Luxembourg
- Silvio Schembri, Minister for the Economy, EU Funds and Lands, Malta
- António Costa Silva, Minister of Economy and Maritime Affairs, Portugal
- Florin Spătaru, Minister of Economy, Romania
- Matevž Frangež, State Secretary at the Ministry of Economy, Tourism and Sport, Slovenia
- Yonnec Polet, PES Deputy Secretary General, PES
