let me first recall that member states are under community law largely free to design their direct tax systems in a way that best meets their domestic policy objectives and requirements
but in recent years they have reached common agreement on several measures proposed by the commission that are designed to tackle the erosion of tax bases and investment allocation distortions
in doing so member states have acknowledged that eu-wide cooperation and fair tax competition rules are vital to protect revenues
on the question of transparency raised by an honourable member of parliament i would like to recall that very recently on twenty-eight april two thousand and nine the european commission adopted a communication identifying actions in order to promote good governance in the tax area which means transparency exchange of information and fair tax competition
firstly the communication identifies how good governance in the tax area could be improved within the european union so as to reinforce the argument for other jurisdictions to follow
it calls on member states to swiftly adopt commission proposals for directives on administrative cooperation and mutual assistance in the recovery of taxes and savings taxation
member states should also continue to give appropriate priority to eliminating harmful business tax regimes
more specifically the commission's proposal on administrative cooperation contains a provision according to which bank secrecy could no longer be invoked to deny a request for information from another member state relating to persons non-resident in the requested member state
this is entirely in line with international consensus on tax information exchange
secondly in order to enhance the promotion of good governance beyond the european union the communication suggests how to ensure better coherence between eu policies with a view to ensuring that the deepening of economic relations between the european union and its partner jurisdictions would be accompanied by a commitment to good governance principles
particular emphasis is placed on ensuring support for developing countries which have committed to the good governance principles
the communication also proposes ways of ensuring more coherence between member states individual policy positions in the international tax area and agreed good governance principles
this would notably include where appropriate a coordinated response to jurisdictions that refuse to apply good governance principles
today the commission presented the communication to the eu ministers of finance at the ecofin meeting with a view to seeking their support on the proposed approach for the last ecofin meeting of the czech presidency in june two thousand and nine
