"Tax policy is primarily the responsibility of Member States. At the EU level, the unanimity requirement makes any formal harmonisation very difficult. There is a wide disparity among Member States in the tax-to-GDP ratio and the taxation of labour, consumption and capital. Over the past ten years, we observe some tax shifting away from labour and a slight downward convergence in the taxation of labour. Tax policy must be part of the exit strategy from the financial and economic crisis. On the financial side of the crisis, there is a case for higher taxation of the banking sector. On the fiscal side, restoring sustainability in a context of a fragile recovery calls for a cautious increase in taxes: we should avoid making it detrimental to growth or inequitable. We call for a new tax package that could help Member States in restoring sound public finances while serving EU-specific goals like a smooth functioning of the single market and EU action on climate change."

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