As Ireland Takes the EU Helm, It Must Put Tax Justice at the Heart of Europe's Future

As Ireland assumes the Presidency of the Council of the European Union, it has an opportunity to shape not just the agenda for the next six months, but the values that underpin it.

As Ireland assumed the Presidency of the Council of the European Union, much of the continent sweltered through a record-breaking heatwave. Climate change is no longer a distant threat. It is reshaping lives across Europe, while continuing to hit hardest those communities and countries that have contributed least to the crisis.

At first glance, soaring temperatures may seem far removed from the sober tax discussions that took place in Dublin on the 6th and 7th July this week, where senior officials from EU finance ministries, the European Commission and the Council Secretariat began talks on the European Commission's latest package of tax reforms. In reality, the connection is direct. Addressing climate disruption requires public investment on a scale not seen for generations. How governments raise revenue determines whether they can invest in sustainable development, support communities through a just green transition and meet international commitments.

Financial Justice Ireland is concerned that the European Commission's Taxation Omnibus package will not strengthen our collective capacity to meet these challenges.

Announced last week, the Omnibus aims to simplify parts of the EU's corporate tax framework and make it easier for businesses to comply with tax rules across borders. Clear, coherent tax systems are important. Businesses benefit from certainty, and tax administration should avoid unnecessary complexity or duplication. But tax justice campaigners warn that ‘simplification’ should not come at the expense of fairness.

The European Network on Debt and Development (Eurodad), Financial Justice Ireland, and other civil society organisations argue that several of the proposals risk weakening anti-abuse measures that try to prevent multinational corporations from shifting profits to low-tax jurisdictions. Together, we are raising concerns about expanding exemptions on certain cross-border payments without first assessing what those changes could mean for public revenues.

While many of the priorities raised by big businesses appear to have been heard and incorporated into the package, concerns like these raised by civil society remain largely unaddressed. However, this critique goes beyond the detail of any one proposal. It asks a more fundamental question about who pays for our collective needs into the future.

Our colleague Tove Maria Ryding, Tax Co-ordinator at the European Network on Debt and Development (Eurodad) outlined the deeper concerns:

“Brussels didn’t just stall on tax progress - it took a giant leap backwards on tax justice. What is termed 'simplification' is actually a capitulation to the interests of major multinational corporations. Our tax system has become the arena for competition between the US and the EU about who can hand out the largest packages of random, unchecked exemptions. This is a race to the bottom where everyday citizens and small companies lose.”

Yet while the European Union appears to be stepping back from stronger protections against tax abuse, some of the most significant developments in international tax are taking place at the United Nations.

For decades, the rules governing international corporate taxation have largely been shaped through the Organisation for Economic Co-operation and Development (OECD), with limited opportunities for countries in the Global South to influence the process. Now, thanks to leadership by the African Group at the United Nations, governments are negotiating a UN Framework Convention on International Tax Cooperation. This represents an historic opportunity to build a more democratic global tax system, one in which all countries have a meaningful voice in writing the rules that affect them.

As Ryding explains, “While Brussels is busy inventing ways to dismantle its tax system to appease corporate giants, a large group of developing countries are insisting on moving forwards. The UN Tax Convention negotiations represent a historic opportunity to shift away from the rigged rules of the past. Instead of trying to match the US in a race to the bottom, EU Member States should focus their energy on the next negotiations at the UN Headquarters in New York in August, where we actually have a democratic chance to create a fair, coherent and transparent international tax system that serves public needs, not corporate greed."

Commenting on the commencement of Ireland's EU Presidency and the Tax Omnibus, unveiled by the EU Commission last week, Vicky Donnelly of Financial Justice Ireland said:

''Ultimately, a fairer global tax system is not a concession to the Global South; it is in everyone's interest. In an interconnected world, tax justice strengthens public finances, reduces inequality and creates the resources needed to invest in climate-resilient societies.''

''Climate justice and tax justice are not separate struggles. They are different expressions of the same question about how we build economies that serve people and protect the planet, rather than concentrating wealth and power in the hands of the few.''

ENDS 

Reference: 

https://taxation-customs.ec.europa.eu/news/european-commission-proposes-landmark-tax-simplification-package-streamline-compliance-and-boost-2026-06-24_en