Luxembourg Finance Minister Says Europe Must Improve Competitiveness to Survive on Global Markets

Luxembourg's Minister of Finance, Gilles Roth, participated in the Eurogroup and Economic and Financial Affairs Council (Ecofin) meetings in Brussels, Belgium on Monday 4 and Tuesday 5 November 2024.

As reported by Luxembourg's Ministry of Finance, the Eurogroup first looked at the latest macroeconomic projections following the Annual Meetings of the International Monetary Fund (IMF) and the World Bank last week in Washington (US). The ministers then discussed the competitiveness of the euro area and the deepening of capital markets.

According to a statement on the competitiveness of the European economy, the Eurogroup wants to boost European growth by addressing the challenges of innovation and productivity in the EU. Emphasis was also placed on reducing energy costs, strengthening the Union's economic security, revitalising the single market and coordinating investment strategies.

In the Ecofin meeting, the 27 EU ministers discussed the tax aspects of the Draghi report on European competitiveness. Minister Roth commented: "Europe must improve its competitiveness if it wants to survive on global markets. Taxes are an important element of this competitiveness. We must also remove regulations that do not make sense. Europe must act. In close cooperation with the Member States."

The Council also reached a political agreement on the VAT in the Digital Age (ViDA) package. This package modernises the VAT Directive to meet the challenges of e-commerce. The adoption of a transaction-based reporting system is considered "a major step forward" in the fight against tax fraud.

Moreover, the ministers took stock of the implementation of the Recovery and Resilience Facility (RRF). They also discussed the economic and financial repercussions of Russia's aggression against Ukraine and the follow-up to the meeting of G20 Finance Ministers and Central Bank Governors on 23 and 24 October 2024 in Washington.

On the sidelines of these meetings, Luxembourg's Minister of Finance met his Belgian and Dutch counterparts, respectively, Vincent Van Peteghem and Eelco Heinen, as part of a Benelux meeting, as well Irish Finance Minister Jack Chambers.