A short European Council meeting has just finished, with an agenda focused on energy and taxation. The discussion was particularly useful to allow the leaders to exchange views and press for decisions on a sector of key importance for economic growth and a topic, tax evasion, critical to governments and the public opinion in the current crisis.
The exchanges covered four specific areas relevant to the EU’s energy policy. First, the leaders agreed to maintain the pressure to complete the internal energy market in 2014 and the interconnections for 2015. Second, they indicated the need to increase energy efficiency, while reducing the dependence on foreign resources. Thirdly, planning for investments in infrastructures was described as fundamental, as well as addressing the diversification of sources of energy. Last but not least, consumers should be at the centre of the policies developed, in particular since current high prices have a direct impact on households. On the four areas, the Council agreed to act and ensured decisive follow up.
With hundreds of millions of Euros being lost every year, the need to take effective steps to fight against tax evasion and tax fraud was the second key topic of today’s meeting. As issues surrounding fiscal havens and opaque tax policies gained momentum, the European Council agreed to combat more efficiently the fraudulent practices and generalise automatic exchanges of information. Fighting VAT fraud comes at the forefront, in particular with legislation to be presented by the European Commission by June on the quick reaction mechanism and a reverse charge mechanism.
For the EU leaders, the current political momentum should be channelled to advance as much as possible, both with legal impulses and practical coordination. One of the objectives set today is to adopt a revised Directive on the taxation of savings income before the end of the year. At the same time, given the importance of a general approach to ensure global effectiveness, the leaders called to prepare strong, coordinated EU positions for the upcoming international talks in G8, G20 and OECD.
Last week’s progress in the ECOFIN ministerial meeting, that agreed on the negotiating mandates for savings taxation with third countries (affecting Switzerland, Liechtenstein, Monaco, Andorra and San Marino), was a clear sign of the relevance of advancing in the efforts of combating tax evasion and enhancing transparency among all member states and with third countries.
In relation to business taxation, another "Achilles’ heel" of the tax evasion strategy being put in place, the Commission will present a proposal before the end of the year for a revised "parent/subsidiary" Directive. The European Council in December will review all these issues.
Finally, a formal decision on the future composition of the Commission (2014-2019) was adopted. The principle of one Commissioner per Member State will continue to be implemented.
In relation to the Summit meeting scheduled for June 27/28, it is worth mentioning that in addition to the agenda in preparation, related to economic policy and the European Monetary Union, it will deal specifically with the youth unemployment, a key issue in the current situation.

Some useful links for today’s meeting:
Full conclusions of the meeting:
http://www.consilium.europa.eu/ueDocs/cms_Data/docs/pressData/en/ec/137197.pdf
Remarks by President Van Rompuy to the press:
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/137199.pdf