The European Economic and Social Committee (EESC) has issued two opinions for improving the single market for services and for regarding the problem of cross-border tax obstacles. Both opinions aim to reduce the number of cross border difficulties experienced by European citizens and businesses alike.

The first opinion issued by the EESC argues that greater integration and a better functioning of service markets should enhance EU competitiveness, services are the main driver of the EU economy and a better functioning of service markets should enhance EU competitiveness. According to the Commission, services account for around 70% of EU GDP. However, the EESC considers that the conclusions drawn by the Commission on the impact of the services directive are premature. The directive has been in force for only a few years and it is difficult to fully understand the effects to the services sector. The EESC considers that these aspects should be examined in the light of the new treaty.

The second opinion assesses the Commission’s plans to tackle the cross border tax problems that citizens and businesses face. The EESC believes that there should be adequate mechanisms in place to ensure operating procedures. The EESC recommends the establishment of one-stop shop services, whereby citizens can obtain information, pay taxes and receive the necessary documentation to be used across the whole EU. It also calls for a simplification of the administrative procedures applied to cross-border situations, to be undertaken on a bi-lateral and multi-lateral basis across Member States.

The EESC recommends the setting-up of an independent Cross-Border Taxation Observatory with specific resources and functions clearly entrusted to it. In December, the Commission published a Communication in which stated this problem, the double taxation and other cross-border fiscal barriers. On the EESC opinion, it encourages the provision of advance tax rulings to give information on final tax liability outcomes, which are specifically tailored to the individual tax payer. With these recommendations, the EESC intends to provide transparency and simplicity for citizens when dealing with their taxes.