At today’s European Council meeting in Brussels, the heads of state and government dealt with energy- and tax-related issues. At this time of limited national budgets, the EU agreed on a drive against tax fraud and tax evasion. An automatic exchange of bank account data too is to be introduced. Chancellor Angela Merkel described the outcomes of the summit as a "breakthrough"  in the clampdown on tax avoidance.

In June the European Council will be focusing on further developing the Economic and Monetary Union. The Chancellor will meet with French President François Hollande in Paris on 30 May to coordinate their positions on these matters.

EU makes major progress on tackling tax fraud

Tax avoidance and tax fraud cost the European Union member states about one trillion euros every year –  money that national budgets in particular desperately need.

The 27 member states of the European Council have taken a clear stance on tackling tax evasion and tax avoidance. Citizens of the EU are to regain confidence in the fairness and effectiveness of taxation.

The Chancellor sees the newly agreed exchange of information as major progress. Information is to be shared inside the EU and between EU member states and non-member states. "There can be no doubt that a full and complete of exchange of information is the way forward," declared Angela Merkel.

The EU also intends to curb legal loopholes used by private companies. As the Chancellor said, "We will be working to ensure that companies are required to pay taxes in the countries in which they generate their profits".

Swift and effective action to be taken on youth unemployment

The heads of state and government agreed to take action as swiftly as possible to tackle youth unemployment in Europe. Over the last 20 years, Germany has gained experience with a wide range of labour market models. In other EU states reforms are also paying off.

This is a matter the Chancellor would like to discuss with representatives of all EU member states. She will be holding a conference at the Federal Chancellery on 3 July. French President François Hollande, José Manual Barroso, President of the European Commission, Herman Van Rompuy, President of the European Council, and the heads of the employment agencies of EU member states will attend.

The EU has earmarked a sum of six billion euros to combat youth unemployment. The conference will also discuss how these funds can be used most effectively.

Making the energy market more competitive

Energy costs account for an ever larger part of average household expenditure in EU member states. Households spend between 7 and 22 per cent of their available income on energy.

In many parts of the world it is becoming cheaper to generate power – but not in Europe. To make the EU more competitive, the European Council has adopted specific measures that should take the Union forward towards the goal of achieving a single energy market. One focus will be expanding cross-border networks.

The European Council has also agreed that energy must remain affordable, reliable power supplies must be guaranteed and that power generation must be environmentally friendly, reported Angela Merkel. 

Strengthening consumers

The heads of state and government voiced their intention of strengthening the rights of consumers, for instance their right to move to a new energy supplier. They also made it clear that they have no intention of reneging on climate change mitigation. Next spring the European Council will be looking at setting climate targets for the period up to 2030.