site.btaFinance Minister Attends ECOFIN Meeting in Brussels

The independence of each Member State's tax policy is the instrument through which it can influence its specific economic and social development, caretaker Finance Minister Lyudmila Petkova told her colleagues from the European Union in Brussels, the Finance Ministry said on Tuesday. Petkova is in Brussels to attend the regular meeting of the EU's Economic and Financial Affairs Council (ECOFIN).

Earlier in the day, during the regular breakfast before the meeting, the ministers discussed the role of tax policy in promoting investment and competitiveness in the spirit of Draghi's Report, the Ministry informed.

Italian economist and former European Central Bank president Mario Draghi was tasked by the European Commission to prepare a report of his personal vision on the future of European competitiveness. The report was presented in September to the European Parliament. It examines the main challenges and opportunities facing Europe and its industrial sector, and proposes measures to strengthen EU competitiveness.

Petkova pointed out that Bulgaria carefully analyzed the measures proposed in the report, including those encouraging the use of tax incentives, tax credits for clean energy, incentives for research and development. She agreed on the need to work hard at national level to increase the competitiveness of EU's economy. However, Bulgaria does not believe that increasing competitiveness can be achieved through additional binding tax measures in the area of corporate taxation. Bulgaria supports all measures to simplify administrative procedures, to reduce the administrative burden for companies and to encourage cross-border investment.

Bulgaria believes that tax harmonization is not the only instrument to increase competitiveness at EU level and other solutions should be envisaged, the press release reads.

ECOFIN reached a compromise on the legislative package on VAT in the digital era, which aims to counter VAT fraud, support businesses and promote digitalization, the Ministry further said.

The meeting also discussed the financial and economic consequences of the Russian military aggression against Ukraine. Within the framework of her participation in the Eurogroup meeting (in inclusive format), Petkova met with Andrzej Domański, Minister of Finance of Poland. They discussed issues of common interest for the public finances of the two countries, Bulgaria's accession to the euro area and the ECOFIN calendar during the upcoming Polish Presidency of the Council of the EU. Minister Domański pledged Poland's support to Bulgaria in its efforts to join the euro area and to assist organizationally in the accession process, the Ministry added.