ZEI Monitor: EU Progress 2014-2019

European Defence Action Plan (from 2016)

• Legislative Proposal - European Defence Fund:

On the 13th of June 2018, the European Commission submitted a Proposal for a Regulation establishing the European Defense Fund under the Multiannual Financial Framework 2021-2027. The Fund seeks to launch cooperation programmes that would not be possible without an EU contribution and aims to support research and development activities. It should provide the necessary incentives to promote cooperation at every stage of the industrial cycle, thereby contributing to the strategic autonomy of the EU. The proposed act should apply from 1 January 2021.

Fair taxation in the digital economy

• Entry into Force - Taxation of Trade in the Internal Market:

On the 4th of December 2018, the Council Directive (EU) 2018/822 as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements entered into force (amending Directive 2011/16/EU).

• Legislative Proposal - Taxation of Trade in the Internal Market:

On the 25th of May 2018, the European Commission issued a Proposal for a Council Directive on the VAT system for the taxation of trade between member states, which would make detailed technical amendments  to the existing VAT rules to make them more fraud-resilient. With these technical measures, the Commission hopes that member states will kick-start discussions on the Commission proposals' made on the 4th of October 2017. (More) 

• Entry into Force - Mandatory Exchange of Information between Tax Advisers, Banks and Accountants (e.g):

On the 13th of March 2018, the Council Directive on Mandatory Exchange of Information between Intermediaries came into effect. The Directive entails new new transparency rules for tax advisers, accountants, banks and lawyers - who execute tax planning for their clients. The new reporting requirements will enter into force on the 1st of July 2020, with EU member states obliged to exchange information every 3 months after that. The first exchange will take place by 31st October 2020. (More)

Social fairness package

EU food supply chain

• Legislative Proposal - Unfair Trading Practices in the Food Supply Chain:

On the 12th of April 2018, the European Commission put forward a Proposal for a Directive to ban the more damaging unfair trading practices in the food supply chain to ensure fairer treatment for small and medium sized food and farming businesses. In addition, the proposal includes enforcement provisions so that national authorities can impose sanctions where infringements are established. (More)

Completing the Capital Markets Union

• Launch of the Pan-European Venture Capital Fund Programme: On the 10th of April 2018 the European Commission and the European Investment Fund (EIF) have launched a Pan-European Venture Capital Funds-of-Funds programme (VentureEU) - based on legislation that came into effect on the 25th of October 2017 (see ZEI Monitor below). The programme is supposed to boost investment in innovative start-up and scale-up companies across Europe, is backed by EU funding to the tune of 410 million euro with which the EU wants to raise up to 2.1 billion euro of public and private investment. This should trigger an estimated 6.5 billion euro of new investment in innovative start-up and scale-up companies across Europe, doubling the amount of venture capital currently available in Europe. (More)

• Legislative Proposals - Collective Cross-Border Investment Funds:

On the 12th of March 2018, the European Commission put forward two pieces of legislation to boost the cross-border market for investment funds: (press release)

1. a Proposal for a Regulation on Facilitating Cross-Border Distribution of Collective Investment Funds

2. a Proposal for a Directive for Reducing Regulatory Barriers to the cross-border distribution of investment funds 

More efficient Single Market law-making

• Legislative Proposal - Programme for Single Market for the Long-Term EU Budget 2021-2027:

On the 7th of June 2018, the European Commission issued a Proposal for a Regulation Establishing the Programme for Single Market, competitiveness of enterprises, including small and medium-sized enterprises, and European statistics. The Single Market Programme is intended to receive 4 billion euro in appropriations in the next long-term EU budget 2021-2027 to empower and protect consumers and enable Europe's many small and medium-sized enterprises (SMEs) to take full advantage of a well-functioning Single Market. (More)

Implementation of the Single Market Strategy (continued from 2017 / 16 / 15) 

• Entry into Force - Single Digital Gateway:

On the 2nd of October 2018, the Regulation establishing a Single Digital Gateway came into effect. A common user interface which is managed by the European Commission shall provide citizens and businesses with access to information, to procedures and to assistance and problem-solving services, amending Regulation (EU) No. 1024/2012. The Single Digital Gateway-Regulation is based on a Commission proposal from the 2nd of May 2017 (see the ZEI Monitor for 2017 below). 

• Entry into Force - Regulation for Professions:

On the 28th of June 2018, the Directive on a Proportionality Test for Professions Regulations came into effect. It is based on a legislative proposal by the Commission from the 10th of January 2017 and the first out of three legal acts to pass with regard to the freedom of services (see the ZEI Monitor for 2017). 

• Best Practices for the Retail Sector: On the 19th of April 2018, the European Commission published a Communication that includes a set of best practices for the retail sector to support member states' efforts to make it more open, integrated and competitive. This Communication on retail is the last deliverable of the 2015 Single Market Strategy. (More)

The proposed best practices includes guidance on the following issues:

1) Facilitating retail establishment;

2) Reducing restrictions to daily operations of shops;

3) Adopting new approaches to promote vitality of city centres;

4) the Retail Restrictiveness Indicator (RRI)

Fairer Taxation of companies (continued from 2017)

• Entry into Force - Quick Reaction Mechanism against VAT Fraud:

On the 6th of November 2018, the Council Directive amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud came into effect. This Council Directive is based on a Commission proposal from the 25th of May 2018.

• Legislative Proposal - Quick Reaction Mechanism against VAT Fraud:

On the 25th of May 2018, the European Commission presented a Proposal for a Council Directive amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud (More)

• Legislative Proposals - EU Value Added Tax System:

On the 18th of January 2018, the European Commission proposed new rules to give member states more flexibility to set Value Added Tax (VAT) rates and to create a better tax environment to help SMEs flourish.This proposals are the final steps of the Commission's overhaul of VAT rules, with the creation of a single EU VAT area to dramatically reduce the 50 billion euro lost to VAT fraud each year in the EU, while supporting business and securing government revenues. (Press release) 

The following legislative proposals have been tabled:

1. a Proposal for a Directive on the VAT Rates to introduce more flexibility for member states to change their VAT rates they apply to different products. The new harmonised and flexible rules proposed would enable all member states, in addition to the two reduced rates of a minimum of 5 per cent and one 0 per cent rate, to apply a third reduced rate of between 0 per cent and 5 per cent.

2. a Proposal for a Directive for the Reduction of VAT Compliance Costs for Small Businesses    

Implementation of the Space Strategy for Europe (continued from 2017 / 16)

• Space Strategy / Long-term EU Budget 2021-2027: On the 6th of June 2018, the European Commission proposed to to devote 16 billion euro for the next long-term EU budget 2021-2027 to help maintain and further enhance the EU's leadership in space. (More)

The money will be allocated as follows:

1) 9.7 billion euro for Galileo and EGNOS, the EU's global and regional satellite navigation systems;

2) 5.8 billion euro for Copernicus, the EU's Earth Observation programme;

3) 500 million euro to develop new security components

Legislative Proposal - Space Programme of the Union:

Initially included in the work programme 2017, the European Commission also published a legislative Proposal for a Regulation establishing the space programme of the Union and the European Union Agency for the Space Programme as a follow-up to the 2015 Space Strategy for Europe, bringing together all of the Union’s activities under one umbrella in this highly strategic field and create a fully integrated space programme.

An Aviation Package (finalised from 2015)

• Entry into Force - Common Rules on Civil Aviation:
  

On the 4th of July 2018, the Regulation on Common Rules in Civil Aviation and the establishment of an EU Aviation Safety Agency(repealing Regulation (EC) No 216/2008) came into effect. It was based on a legislative proposal by the European Commission from the 7th of December 2015 (see below).  

Implementation of the Single Market Strategy

• Legislative Proposals - Mutual Recognition of Goods / Product Safety:

On the 19th of December 2017 the EU Commission presented two legislative proposals to facilitate cross-border business for companies and especially SMEs: (press release)

1. a Proposal for a Regulation on the Mutual Recognition of Goods lawfully marketed in another state

2. a Proposal for a Regulation on Compliance and Enforcement Rules for Product Safety

• Legislative Proposals - Single Digital Gateway / Single Market Information Tool:

On the 2nd of May 2017 the EU Commission presented a measures to facilitate doing cross-border business. The proposed legislation aim to enable citzens and companies to manage their paperwork online in their home country or when working, living or doing business abroad in the EU. (Press release)

The three concrete initiatives comprise of:

1. a Proposal for a Regulation on a Single Digital Gateway: key administrative procedures will be available online, including requests for a birth certificate, to register a car, start a business or register for social security benefits.

2. a Proposal for a Regulation on a Single Market Information Tool, allowing the Commission, in targeted cases, to source defined and readily available data (such as, for example, cost structure, pricing policy or product volumes sold) in cases of serious difficulties with the application of EU Single Market legislation

3. the SOLVIT Action Plan to increase the use of SOLVIT, a free of charge service which provides rapid and pragmatic solutions to people and companies all over Europe when they experience difficulties with public administrations while moving or doing business cross-border in the EU.

• Legislative Proposals - Freedom of Services / Regulation of Professions:

On the 10th of January 2017, the European Commission proposed a set of measures for the EU service sector to facilitate services for companies and professionals in the EU. The planned legislative measures include:(press release)

1. A Proposal for a Regulation introducing an European Services e-card

2. A Proposal for a Directive for a Services Notification Procedure

3. A Proposal for a Directive on a Proportionality Test for new Regulation of Professions

Fairer Taxation of Companies

• Taxation of Cross-Border Investors: On the 11th of December 2017 the EU Commission put forward new guidelines on withholding taxes to help Member States reduce costs and simplify procedures for cross-border investors in the EU. The new Code of Conduct offers solutions for investors who, as a result of how withholding taxes are applied, end up paying taxes twice on the income they receive from cross-border investments. (More)
  

• Legislative Proposal - Reform of VAT Rules:

On the 4th of October 2017, the European Commission issued a Proposal for a Council Directive to harmonise rules in the Value Added Tax (VAT) system and a Communication to make the VAT system more fraud-proof, announcing the biggest VAT reform of in a quarter of a century. The reboot aims to improve and modernise the system for governments and businesses alike. (More)

• Taxing the Digital Economy / Work Programme 2018: On the 21st of September 2017, the European Commission published a Communication on a Tax System in the Digital Single Market. This Communication paves the way for legislation to be presented in the course of the work programme 2018.  (More)

Implementation of the Space Strategy for Europe

• Space Strategy: The  approach  advocated  by  the  European Commission in its 2016 Communication on a Space Strategy for Europe was affirmed by both the Council in its 30th of May 2017 Conclusions and the European Parliament in its Resolution on the 12th of September 2017.

Implementation of the Capital Markets Union Action Plan (continued from 2016 / 15)

• Legislative Proposals - Supervisory Regime for Investment Firms:

On the 20th of December 2017, the European Commission proposed a two-track overhaul to make life simpler for smaller investment firms, whilst ensuring that large, systemic investment firms which carry out bank-like activities and pose similar risks as banks are regulated and supervised as banks. As a consequence, the European Central Bank, in its supervisory capacity in the form of the Single Supervisory Mechanism) would supervise such systemic investment firms in the Banking Union. (Press release)

The legislative proposals include:

1. a Proposal for a Regulation on the Prudential Requirements of Investment Firms

2. a Proposal for a Directive on the Prudential Supervision of Investment Firms 

• Entry into Force - Common Rules on Securitisation:

On the 12th of December 2017, the Regulation laying down common rules on securitisation came into effect. It was based on a legislative proposal by the European Commission from the 30th of September 2015 (see ZEI Monitor 2015 below).

• Entry into Force - Prudential Requirements for Credit Institutions and Investment Firms:

On the 12th of December 2017, the  Regulation on prudential requirements for credit institutions and investment firms (amending Regulation (EU) No 575/2013) came into effect. 

• Legislative Proposal - Seat of the European Banking Authority:

On the 29th of November 2017, the European Commission issued a Proposal for a Regulation on the Seat of the European Banking Authority (EBA) in order to provide a legal basis for the EBA's move from London to Paris due to the Brexit-vote.

• Entry into Force - Venture Capital and Social Entrepreneurship Funds:

On the 25th of October 2017, the Regulation on European Venture Capital Funds, EuVECA, and on European Social Entrepreneurship Funds, EuSEF (amending Regulations (EU) No 345/2013 and No 346/2013) came into effect. It was based on a legislative proposal by the European Commission from the 14th of July 2016 (see ZEI Monitor 2016 below).

• Legislative Proposal - Capital Markets' Supervision:

On the 20th of September 2017 the European Commission published a Communication explaining its measures for reinforcing the integrated supervision of financial markets to strengthen the Capital Markets Union and proposed a series of legislation to pave the way for further financial integration: (press release)

1. a Proposal for a Regulation on the mandate of European Supervisory Authorities (ESAs) to reinforce their powers, governance and funding framework. The ESAS include the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), the European Securities and Markets Authority (ESMA)

2. a Proposal for a Regulation on establishing a European Systemic Risk Board (ESRB) and EU macro-prudential oversight of the financial system (amending Regulation (EU) No 1092/2010) to change to composition and organisation of the ESRB, which monitors stability risks for the financial system as a whole.

3. a Proposal for Directive on the supervision and powers of the European Securities and Markets Authority,  ESMA (amending Directive 2014/65/EU on markets in financial instruments and Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance, Solvency II)

• Entry into Force - EU Prospectus Rules for Securities:

On the 14th of June 2017, the Regulation on Prospectus Rules for Securities came into effect. It sets new publishing requirments when securities are offered to the public or admitted to trading and was based on a legislative proposal by the European Commission from the 30th of November 2015 (see ZEI Monitor 2015 below).

• Legislative Proposal - Supervision and Regulation of Derivatives:

On the 13th of June 2017, the European Commission has put forward a Proposal for a Regulation on the Set-Up of the European Securities and Markets Authority (ESMA) to centralise the supervision and regulation of derivatives contracts.

Labour Mobility Package

• Posting of Workers Directive: On the 8^th of March 2016, the European Commission presented a Proposal for a Directive on the Posting of Workers, revising the rules for the provision of services. It aims to promote the principle that the same work at the same place should be remunerated in the same manner. The aim of this proposal is to facilitate the posting of workers, who are employed in one member state and sent to work temporarily in another by their employer. (More)

• Social Security Coordination: On the 13th of December 2016, the European Commission presented a Proposal  for a Regulation on the Coordination of Social Security Systems, revising the EU's existing legislation on that matter to facilitate labour mobility, ensure fairness for those who move and for taxpayers, and provide better tools for cooperation between member state authorities. Based on case law of the European Court of Justice, the proposal clarifies that member states may decide not to grant social benefits to mobile citizens which are economically inactive. (More)

Follow - up to Single Market Strategy

• Start-Up and Scale-Up Initiative: On the 22nd of November 2016, the European Commission also presented its Communication on the Start-up and Scale-up Initiative, which aims to give Europe's innovative entrepreneurs the opportunity to become world leading companies. It intends to pull together all the possibilities that the EU already offers and adds a new focus on venture capital investment,insolvency law and taxation. (More)

• Business Insolvency: On the 22nd of November 2016, the European Commission put forward a Proposal for a Directive on Business Insolvency in Europe in order to promote the early restructuring of firms to support growth and protect jobs. (More)

• Consumer Markets Scoreboard: On the 5th of September 2016, the European Commission published its 2016 Consumer Markets Scoreboard which monitors EU consumers' ratings of how 42 goods and services markets work. The Consumer Scoreboards are used by policymakers and stakeholders to assess the impact of policy over time and compare the situation between member States. A key finding is that improvements are bigger for the services markets than for goods markets. Financial services show the biggest progress. (More)

• Collaborative Economy: On the 2^nd of June 2016, the European Commission presented a Communication with guidance aimed at supporting consumers, businesses and public authorities to engage confidently in the collaborative economy. It explains how existing EU law should be applied on when  it comes to market access requirements, consumer protection, liability, labour law and tax. (More)

• Tackling Geoblocking and Enabling Cross-Border Parcel Delivery: On the 25^th of May 2015, the European Commission put forward a package of measures to allow consumers and companies to buy and sell products and services online more easily and confidently across the EU. Delivering on its Digital Single Market and Single Market strategies, the European Commission presented a three-pronged plan to boost e-commerce by tackling geoblocking, making cross-border parcel delivery more affordable and efficient and promoting customer trust through better protection and enforcement. (More)

European Defence Action Plan

• Defence Action Plan: On the 30th of November 2016, the European Commission published a Communication on a European Defence Action Plan that is supposed to support member states' more efficient spending in joint defence capabilities, strengthen European citizens' security and foster a competitive and innovative industrial base as part of a Single Market for Defence. (More)

Action Plan on VAT

• VAT for Cross-Border E-Commerce: On the 1st of December 2016, European Commission put forward proposals to introduce an EU wide portal for online VAT payments (the 'One Stop Shop'). As an intended consequence, VAT compliance expenses should be significantly reduced, saving businesses across the EU 2.3 billion euro a year. The new rules should help ensure that VAT is paid in the member state of the final consumer, leading to a fairer distribution of tax revenues amongst EU countries. two crucial pieces of legislation:(press release)

1. a Proposal for a Council Directive on the common system of value added tax

2. a Proposal for Council Directive on Modernising VAT for cross-border B2C e-commerce

• VAT Gap Study: On the 6th of September 2016, the European Commission released its 2016 VAT Gap study which suggests that €159.5 billion in Value Added Tax (VAT) revenues were lost across the EU in 2014. The VAT Gap study is funded by the Commission as part of its work to reform the VAT system in Europe and to clamp down on tax fraud and evasion. (More)

• VAT Action Plan: On the 7th of April 2016 the European Commission presented its VAT Action Plan to modernise the VAT-system in the EU. The Action Plan is supposed to be the first step towards a single EU VAT area which is equipped to tackle fraud, to support business and help the digital economy and e-commerce. (More)
  

Corporate Tax Package

• Common Corporate Tax Base (CCTB): On the 25th of October 2016, the European Commission put forward a Proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB) which aims to make it easier and cheaper to do business in the Single Market. Furthermore the CCCTB should act as a powerful tool against tax avoidance. (More)

• Public Tax Transparency for Multinationals: On the 12th of April 2016, the European Commission presented a Proposal for a Directive on the Disclosure of Income Tax Information of Multinationals on a country-by-country basis. The proposal builds on the Commission's work to tackle corporate tax avoidance in Europe, estimated to cost EU countries EUR 50-70 billion a year in lost tax revenues. (More)

• Anti-Tax Avoidance Measures: On the 28th of January 2016, the European Commission issued new measures against tax avoidance. The legislative proposals  include: (press release)

1. a Proposal for a Council Directive on Rules against Tax Avoidance Practices

2. a Proposal for a Council Directive on mandatory automatic exchange of tax-related information

A Space Strategy for Europe

• Space Strategy: On the 26th of October 2016, the European Commission put forward a new proposal for a space policy in order to foster new services and promote Europe's leadership in space. The goal of the "Space Strategy for Europe" is to promote the uptake of Copernicus, EGNOS and Galileo solutions in EU policies where justified and beneficial, including in the short term, with measures introducing the use of Galileo for mobile phones, and critical infrastructure using time synchronisation. (More)

• Launch of Galileo Satellites: On the 17th of November 2016, four Galileo satellites were successfully launched. The Galileo constellation now has 18 satellites in orbit out of the minimum 24 needed for worldwide coverage. This is the first time that a European launcher, Ariane-5, was used for Galileo. The new satellites will now accelerate the deployment of Europe's own global satellite navigation system Galileo. (More)

• Galileo: On the 15th of December 2016, Europe's satellite navigation system Galileo started offering its initial services to public authorities, businesses and citizens. According to the European Commission Galileo will support emergency operations, create more accurate navigation for citizens, enable better time synchronisation for critical infrastructures and ensure secure services for public authorities. (More)

Capital Markets Union Action Plan (continued from 2015)

• Venture Capital and Social Entrepreneurship Funds: On the 14th of July 2016 the European Commission presented a legislative proposal as part of its Capital Markets Union (CMU) Action Plan to unlock market-based investment, opening up fund labels to fund managers of all sizes and expanding the range of companies that can be invested in: (press release)

Proposal for a Regulation (amending Regulations (EU) No 345/2013 and No 346/2013) on European Venture Capital Funds (EuVECA) and on European social entrepreneurship funds (EuSEF)

An Internal Market Strategy

• On the 28th of October 2015 the European Commission presented the Internal Market Strategy delivering on President Juncker’s political commitment to unleash the full potential of the Single Market and make it the launchpad for Europe to thrive in the global economy. (More)

A Labour Mobility Package

• On the 6th of October 2015 the College of Commissioners held a comprehensive orientation debate on the Labour Mobility Package. The outcome of the debate will feed into the preparations for the Labour Mobility Package to be presented before the end of the year. (More)

Capital Markets Union Action Plan

• EU Prospectus Rules for Securities: On the 30th of November 2015, the European Commission presented a Proposal for a Regulation on Prospectus Rules for Securities to improve access to finance for companies and simplify information for investors, setting new publishing requirments when securities are offered to the public or admitted to trading.

• Action Plan on a Capital Markets Union: On the 30th of September 2015 the European Commission presented its Action Plan on Building a Capital Markets Union (CMU Action Plan), outlining the upcoming legislative measures. Furthermore the Commission put forward two legislative proposals: (press release)

1. a Proposal for a Regulation laying down common rules on securitisation

2. a Proposal for a Regulation on prudential requirements for credit institutions and investment firms amending Regulation (EU) No 575/2013 to open up investment opportunities for a wider set of non-bank investors.

• Green Paper on a Capital Markets Union: On the 18th of February 2015, the European Commission published Green Paper to outline a possible strategy for building a Capital Markets Union (CMU) and to stimulate an EU-wide discussion on necessary measures to be taken. The Action Plan on the CMU to be unveiled in the third quarter of 2015 will be based on the feedback to the Green Paper. (More)
   

A Framework for Financial Institution Resolution

 An Aviation Package

• Enforcement of passenger rights: On the 15th of June 2016, the European Commission issued Interpretative Guidelines on the EU's Air Passenger Rights Regulation. These new guidelines aim to ensure the better enforcement of passenger rights in the EU by summarising the existing case law and consolidate all ongoing practices. Of particular relevance are: (press release)

1. Compensation for a delay: the right to compensation after a delay of three hours at the final destination.

2. Compensation for a missed connecting flight: the right to compensation in case of a long delay on arrival due to missed connecting flights.

3. Extraordinary circumstances concerning technical defects linked to the premature malfunction of certain components of an aircraft or aircraft collisions with other aircraft/devices whereby airlines cannot be exempted from the payment of compensation in case of a cancellation and delay.

4. Measures to be taken in extraordinary circumstances: the right to assistance and care during exceptional events such as the ash cloud in 2010.

• Aviation Strategy for Europe: On the 7th of December 2015, the European Commission presented its aviation strategy which rests on two pillars: (press release)
  

1. a Communication on a new Aviation Strategy for Europe to improve the competitiveness of the EU's aviation sector in the years to come, including a package of requests to negotiate air transport agreements with third countries.

2. a Proposal for a Regulation on Common Rules in Civil Aviation and an EU Aviation Safety Agency, repealing Regulation (EC) No 216/2008 

Towards a Fairer EU Food Supply Chain: Harmonising the Legal Framework by Micol Visciano No. 56 July 2018 (Download)

The European Union Space Strategy: A Science Diplomacy Perspective by Elif Özkaragöz Doğan No. 50, September 2017 (Download)

Brexit: What is at stake for the Single Market by Sarah Gansen No. 38, May 2016 (Download)

The Myths and Realities of EU Labour Mobility by Sally Brammer No. 30 September 2015 (Download)

New Strategy for Completing the Single Market: A New Chance? by Robert Stüwe No. 26 July 2015 (Download)

Policy objectives for the internal market by Balázs Kubinszky No.8 December 2014 (Download)