Financial sector reform: Investing in confidence
A well-functioning financial sector is crucial for generating growth and jobs. Since the outbreak of the crisis, the Commission has undertaken a comprehensive overhaul of financial regulation and supervision. The vast bulk of key initiatives are already adopted or on the table, including proposed legislation on derivatives, credit rating agencies, capital requirements, sounder and more transparent securities markets, and tackling market abuse. An assessment of the cumulative impact of the reforms will also be published.
The EU should have the clear ambition of completing the reform next year. In the early months of 2012, the Commission will propose the remaining pieces of legislation focusing on the protection of investors. A revision of the rules governing collective investment schemes (UCITS) will aim to enhance investor protection and strengthen the internal market. Investor protection and transparency are also at the heart of an initiative on pre-contractual disclosures on complex investment products (PRIPs), as well as on insurance mediation.
Financing the future: Securing sustainable public revenue
The EU's growth agenda is a central contribution it can make to restoring public finances. But while taxation is primarily the competence of Member States, EU action can help Member States work to make sure that the European social model can be financed in the future. In 2011, the Commission has tabled a number of important initiatives to rebalance the contribution of the financial sector to public finances (Financial Transaction Tax), shift the tax burden to resource consumption (Energy taxation) and improve the functioning of the Single Market (CCCTB).
In 2012, the Commission will come forward with additional measures to ensure the sustainability and the stability of public finances. The Commission will work on building a modern VAT system, able to combat fraud and lightening the bureaucratic burden for SMEs and other companies operating cross-border.
Tax evasion threatens government revenues in all Member States. Tax evasion skews the competitive environment unfairly against the large majority of citizens and businesses that play by the rules. A reinforced strategy to help Member States tackle "tax havens" will be proposed to bring the EU contribution to stemming the potential losses to public coffers.
In times of budgetary austerity, the protection of taxpayers' money gains renewed importance. Every year, substantial amounts are lost to fraud and other illegal activities affecting EU public money. The Commission will put forward a proposal to ensure the protection of EU financial interests by criminal law.
To respond to the challenges faced by European companies due to the economic crisis, the Commission is carrying out an in-depth evaluation of the need to reform the Insolvency Regulation. Based on its conclusions, the Commission will develop future options for more efficient cross border insolvency rules, including for groups of companies.
© European Commission
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