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The Draghi report highlights how economic growth has stagnated in the EU due to structural weaknesses that risk undermining the EU’s global competitiveness. To bolster the EU’s attractiveness and competitiveness, lawmakers should pursue a coherent pro-growth tax reform agenda. A pro-growth tax reform agenda in the EU27 can be evaluated through five principles: (a) economic efficiency, including low distortion of economic decisions and low administrative and compliance costs; (b) consideration and strong discipline across the entire lifecycle of tax policy reform: initial decision making process, legal design and implementation; (c) evidence-based accountability through clear objectives, rigorous impact assessment, meaningful consultation and ex post review; (d) strengthening the Single Market rather than adding cross-border frictions; and (e) neutrality and fair competitive conditions across sectors, countries and business models.

These principles are mutually reinforcing: growth is supported not only by sound and coherent statutory design, but by the full tax system including law, administration and taxpayer interaction. AmCham EU has prepared a framework for EU lawmakers to use while designing, implementing and evaluating tax policy based upon our members’ experiences operating in every EU Member State and almost every country around the world.

The EU’s sustainable finance rules should help investors understand where their money is going and support Europe’s transition. The Commission’s proposal improves the current system, but some changes are still needed.

The new Transition category should focus on whether companies are cutting emissions, not on the sector they operate in. The 70% threshold should stay. The rules should also work with MiFID II and the EU Taxonomy.

Companies need 24 months to prepare. Firms that fall outside the new scope should stop reporting as soon as the rules enter into force.

Read the paper to learn how SFDR 2.0 can direct more capital towards Europe’s transition.