European Union

Today, EU finance ministers agreed on the reform of the mandate of the Code of Conduct Group, the body within the Council of the EU that assesses harmful tax regimes and is responsible for the EU tax haven list. This reform updated the definition of harmful tax regimes in EU countries. No progress was made on updating the criteria for the EU tax haven list.  

Across Europe and the world, people are facing rising energy bills and inflation driven by the Ukraine war and the aftermath of the pandemic. Meanwhile, big business in every sector, not just energy, are raking in extremely high and excessive profits.

Today, the President of the European Commission, Ursula von der Leyen, proposed the introduction of a cap on revenues of companies producing electricity with low costs and a solidarity contribution from fossil fuel companies. The revenues from these unexpected profits will be directed to people and businesses to help them adapt to the recent increase in energy prices as well as to invest in clean home-grown energy sources.

Today, the European Parliament voted through a non-binding report on the European Commission’s proposal to implement the deal on a global minimum tax at the EU level. EU Finance Ministers are expected to vote on a final agreement next Tuesday, 24 May. 

Today, the European Commission released their Fit for 55 legislative package. This bundle aims to revise the EU’s current 2030 climate and energy rules. The package will implement the goal of reducing average EU carbon emissions by 55% in 2030. In response to the package, Evelien van Roemburg, Oxfam EU Head of Office said: “We are at a tipping point in the fight against the climate crisis. The EU has the opportunity to keep us from tipping over the edge by capping the rampant increase in global temperatures to 1.5° Celsius."

The European Parliament voted on its EU budget for aid and foreign policy (NDICI). In response to the vote, Evelien van Roemburg, Oxfam EU Head of Office said: "This new financial instrument stands a real chance at combatting poverty and inequality which has leapt during the pandemic."

International development cooperation has consistently been an integral component of the European Union's foreign policy. Like diplomacy, development cooperation is a means to foster stability, security and prosperity for all in an increasingly interconnected world. The COVID-19 pandemic, the climate crisis and the ripple effects of Russia’s full-scale invasion in Ukraine have underscored our global interdependence and the imperative for international collaboration, investment, and partnerships that promote equitable development globally while safeguarding the long-term interests of the EU and its citizens. 

Ahead of the special European Council meeting that you scheduled for 6 March, we write to urge you to resist a dangerous and false dichotomy: the idea that increasing defence spending must come at the expense of international development assistance (ODA). Cutting aid would be both a moral failure and a strategic mistake. At a time of growing instability, hunger, and global crises, when conflict, climate disasters and inequality are worsening, Europe must reaffirm its commitment to multilateralism and solidarity, and show global leadership. We know the only way to meet the daunting challenges of our time is together.