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.