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DRAFT REPORT (2024/2117(INI))

On a coherent tax framework for the EU's financial sector

ECON-PR-779360

Committee on Economic and Monetary Affairs · Rapporteur: Matthias Ecke

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✦ In short · AI summary of this text, generated 4 Sept 2026

Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

This draft report proposes a coherent EU tax framework for the financial sector, addressing VAT exemption distortions, fragmentation, and fair contribution. It calls for VAT reform, coordinated taxation, and temporary windfall taxes on exceptional profits, urging the Commission to act.

Committee position. The rapporteur advocates a balanced mix of reforms: modernising VAT, advancing coordinated EU-wide taxation, and developing common minimum standards for temporary windfall taxes.

Key points

  1. Notes that VAT exemption for financial services causes a policy gap and fragmentation, with 91 sector-specific taxes across Member States, hindering cross-border expansion.
  2. Calls for clarified tax rules to improve capital allocation and competitiveness, and for the Commission to propose innovative solutions.
  3. Regrets stalled VAT reform efforts and notes lack of provisions for crypto-assets, decentralised finance, and fintech, causing legal uncertainty.
  4. Calls on the Commission to publish a proposal to reform VAT rules for financial services, considering distributional consequences and mitigating costs for retail consumers.
  5. Recalls the EU's annual investment gap of EUR 750 to 800 billion and the commitment to increase defence investment, suggesting fair taxation could mobilise revenue.
  6. Regrets the Commission's withdrawal of the FTT proposal and urges a concrete plan to address the policy gap.
  7. Emphasises that any tax proposal should ensure a fair, sound, and simple financial contribution, safeguarding stability and competitiveness.
  8. Calls for a legislative proposal for temporary taxation of exceptional profits in the financial sector, transparent, time-bound, and applying only to profits from extraordinary circumstances.

Who is affected

  • Financial institutions in the EU, including banks, fintechs, and crypto-asset service providers, face potential VAT changes and new taxes.
  • Retail consumers of financial services may be affected by VAT reform, with calls to mitigate costs.

Figures and deadlines

  • 91 sector-specific taxes across Member States
  • EUR 750 to 800 billion annual investment gap
  • EUR 3.5 billion per year from FTT with 10 Member States
  • EUR 31 to 75 billion with all Member States

Legal basis: Articles 113, 114 and 115 of the Treaty on the Functioning of the European Union