At the latest session of the council of EU finance ministers, the Ecofin, representatives of member states discussed the future of the European financial supervisory system and the potential simplification of the VAT regulations on international e-trade. Finance ministers also had an overview of the EU’s current economic situation at a working breakfast.

Minister of State for Financial Affairs Ágnes Hornung said that Europe’s economic growth remained subdued, and due to high growth potential the CEE region might be a key determinant in fuelling the EU’s economic expansion.

With regard to the revision of the EU’s financial supervisory system Ágnes Hornung stressed that Hungary shared the standpoint of several other member states and market participants and opposed the disruption of the accord and the consequential loss of trust that had been existing between national and European supervisory authorities. Local authorities usually know their national markets best, and this knowledge should not be disregarded, she added.

The ministers were also informed of the candidacy of Ms Pilar Jurado Borrego to the post of Secretary General at the World Customs Organization, whose aspirations Hungary supports, the Minister of State noted.

The issue of e-trade VAT was also raised at the meeting. It may cause difficulties when the countries of the buyer and seller are different: the seller must comply with the VAT regulations of the country where the consumer resides. Therefore, the European Commission has prepared a package of proposals aiming to facilitate smooth transactions within the EU’s internal market, safeguard the competitiveness of EU enterprises and ensure the orderly taxation of digital economy participants. We find the approach of the proposal reasonable, she concluded.

(Ministry for National Economy)