Belgium (Brussels Morning Newspaper) In a dramatic turn of events, the Pandora Papers scandal has sent shockwaves through the European Union (EU), igniting calls for stricter measures against tax avoidance and evasion. During a fiery European Parliament plenary debate on the Lessons learned from the Pandora Papers and other revelations, MEPs from the Renew Europe Group delivered a scathing critique, asserting that tax evasion can no longer go unpunished.
Leading the charge, MEP Billy Kelleher (Fianna Fáil, Ireland) passionately exclaimed, “We’re losing a staggering €155 billion each year globally due to tax revenue leakage! This money should be invested in cleaner energy, recovering from the Covid pandemic, and vital infrastructure for our citizens. The Pandora Papers expose a labyrinth of deception involving numerous players. We must identify and seal every leak in the chain to ensure that everyone pays their fair share!”
The EU finds itself at a crossroads, as revelations from the Pandora Papers not only erode the revenue-raising capacity of member states but also undermine the credibility of joint European actions in the midst of pressing geopolitical challenges, such as the conflict in Ukraine. Shockingly, Russian oligarchs, hand in glove with intermediaries and offshore shell companies, continue to evade EU sanctions through existing loopholes, leaving their assets beyond oversight.
To combat this alarming trend, Renew Europe MEPs propose a comprehensive approach. They stress the need for enhanced coordination among Member States’ tax administrations, coupled with stricter transparency standards. The European Commission must play a pivotal role in robustly enforcing regulations to expose the shadowy shell companies that aid these unscrupulous individuals in evading their tax obligations.
Furthermore, the Swedish Presidency and the upcoming Spanish Presidency of the EU Council must break the impasse and make significant progress on the long-blocked Unshell Directive. This crucial directive aims to curb tax avoidance tactics and represents a giant leap in the right direction.
Acknowledging the vital role played by investigative journalism and freedom of the press in upholding democratic societies, the Parliament also urges stronger protection for the confidentiality of sources and whistleblowers, ensuring their crucial contributions continue unhindered.
As the Pandora Papers continue to send shockwaves through the EU, the need for decisive action becomes ever more apparent. The EU’s financial system must shed its inefficiencies and act as an impenetrable fortress against tax evasion. Failure to do so will only widen the legitimacy and credibility gap between EU institutions and the European citizens they serve. The time for change is now, and the fight against tax evasion must be intensified for the sake of a fairer and more just Europe.
