ECOFIN Council: Financial assistance to Ireland adopted
08 December 2010
On crisis prevention, the Council aims at introducing levies and taxes in the context of crisis resolution and to contain systemic risk in all Member States by 2012.
Loans amounting to EUR 22.5 billion will be granted under the European Financial Stability Mechanism as part of an EUR 85 billion package of financial assistance, on the basis of a programme negotiated with the Irish authorities by the Commission and the International Monetary Fund. The programme will involve an overhaul of Ireland's banking system, growth-enhancing reforms and the reduction of Ireland's government deficit below 3 % of gross domestic product by 2015.
The Council approved a draft directive aimed at strengthening administrative cooperation between the Member States in the field of taxation, one of a number of savings taxation and tax governance measures aimed at preventing tax fraud.
In the light of greater taxpayer mobility and a growing volume of cross-border transactions, the draft directive sets out to fulfil the member states' growing need for mutual assistance – especially via the exchange of information – so as to enable them to better assess due taxes. It will also ensure that an OECD standard for the exchange of information on request is implemented in the EU. In addition, it will provide for the automatic exchange of information to be introduced on a step-bystep basis.
The Council approved reports to the December European Council on bank levy schemes. It also adopted conclusions on crisis management in the financial sector, on healthcare and on harmful tax competition with regard to business taxation.
© ECFIN
