The Eurogroup agreed on a set of common principles that will shape reforms of member states' taxation systems.
These principles focused on the importance of
- reducing taxes on the most vulnerable citizens
- compensating tax reductions on labour by compensatory measures in areas that are less detrimental to growth
- undertaking tax reductions together with any other necessary labour market reforms
- obtaining broad political and societal support for the reforms
Member states will be expected to implement these principles when drawing up their draft budgets for 2015. Eurogroup will assess draft budgets in November based on the Commission's assessment.
Eurogroup committed to Stability and Growth Pact
The Eurogroup agreed that the current low growth and subdued inflation makes decisive action essential on all fronts. Recent monetary policy measures announced by the European Central Bank need to be complemented by action from member states.
The pursuit of sound fiscal policies, structural reforms and investment facilitation continue to be the Eurogroup's growth strategy. Ministers reiterated that this strategy must be pursued within the rules of the Stability and Growth Pact (SGP). Any form of flexibility should be found within SGP rules and structural reforms undertaken in member states must be taken into consideration.
"We all agreed we would stick to the rules," said the President of the Eurogroup J.Dijsselbloem after the meeting.
Press Statement
Statement on common principles for reforms reducing the tax burden on employment
Eurogroup President's Statement
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