What changed

From · Plenary report · 24 Jul 2025 A-10-2025-0155 on the role of simple tax rules and tax fragmentation in European competitiveness

To · Adopted text · 9 Oct 2025 TA-10-2025-0227 The role of simple tax rules and tax fragmentation in European competitiveness

✦ In short · AI narration of the differences below, generated 4 Sept 2026

Adds a paragraph with the rapporteur's general views on tax simplification, digitalisation, and cooperation. #8 The other changes are formal: decimal commas replace decimal points and the forwarding instruction is removed. #1 #2 #3 #4

1 change of substance, plus 7 formal. Each change below carries a one-line ✦ note from the same model. Written from the two texts only — read the highlighted passages before relying on it.

The changes to the text itself, in document order. Cover page, citations (“having regard to …”), standard resolution paragraphs and punctuation-only edits are left out — they are in “Show every difference”.

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Change #8 Substance

Adds a paragraph after the final resolution paragraph containing the rapporteur's general views on tax simplification, digitalisation, and cooperation.

59. Instructs its President to forward this resolution to the Council and the Commission.

~~Your Rapporteur takes the view that in the current economic landscape, we must strive for simplification and reduce regulatory and administrative burden.~~

The European Union’s tax landscape is at a critical juncture, requiring a balance between fostering economic growth, enhancing competitiveness, and ensuring tax fairness. The evolving economic environment, marked by digitalisation and globalisation, requires coordinated tax policies to address cross-border challenges while reducing administrative burdens for businesses, particularly small and medium-sized enterprises (SMEs).

The principles enshrined in the Treaty on European Union, in particular in Article 4, and in the Treaty on the Functioning of the European Union underscore the importance of the internal market, the free movement of goods, services, capital, and people. A predictable tax framework is fundamental to supporting the internal market and ensuring that businesses can operate efficiently across borders without undue complexity. While the EU has made progress in tackling tax evasion and avoidance, further measures are needed to reduce bureaucratic hurdles and create a more business-friendly environment, as highlighted in the Draghi report on “The Future of European Competitiveness”.

Tax simplification and digitalisation are key to reducing compliance costs and improving efficiency. The Commission’s commitment to cutting reporting requirements by 25% (and at least 35% for SMEs) is a step in the right direction. Ex-ante impact assessments for new tax-related proposals and competitiveness checks on existing measures will help align tax policies with broader economic goals.

Digitalising tax administration holds great potential for reducing administrative burdens. Leveraging artificial intelligence (AI) and digital tools can streamline compliance processes, making it easier for companies, especially SMEs, to navigate complex tax regulations.

Strengthened cooperation between Member States is crucial for tackling tax evasion and aggressive tax planning. Improved information exchange, coordinated audits, and enhanced enforcement mechanisms can strengthen the fight against tax abuse.

In conclusion, the EU’s tax agenda must prioritise simplification, digitalisation, and cooperation to create a fairer and more competitive tax environment. By reducing fragmentation and complexity, enhancing digital tools, and embracing coordinated policies, the EU can lay the groundwork for sustainable growth and prosperity in the years to come.