January 2019

On 20th December, the European Commission launched a (relatively brief) consultation on moving from unanimity to qualified majority voting (QMV) in the Council on certain tax issues. The public consultation closes on the 17th January, with “indicative planning” to be carried out this quarter.

This development is seen as being likely to lead to further tax harmonisation within the EU, and would make it easier to increase taxes and reduce tax competition. To understand the impact this would have on taxation among EU countries, it is important to understand what this means in terms of how decisions are made in the EU, including the role of the Council and the replacement of the national veto there with QMV.