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Council of the European Union      22/6/2018 France's deficit below 3% of GDP, procedure closed On 22 June 2018, the Council closed the excessive deficit procedure for France, confirming that it has reduced its deficit below the EU's 3% of GDP reference value. The Council thereby abrogated its decision of April 2009 on the existence of an excessive deficit in France. Member states are required by article 126 of the Treaty on the Functioning of the European Union (TFEU) to avoid excessive government deficits. The procedure is used to support a return to sound fiscal positions. Once it has exited an excessive deficit procedure, a member state is subject to the preventive arm of the EU's fiscal rulebook, the Stability and Growth Pact. Procedures were open for 24 member states in 2010-11 at the height of the euro crisis. Now only one (Spain) remains subject to an excessive deficit procedure. Council of the European Union      22/6/2018 VAT fraud: Agreement on measures to boost administrative cooperation On 22 June 2018, the Council agreed on measures to strengthen administrative cooperation in order to improve the prevention of VAT fraud. The proposed regulation addresses the most widespread forms of cross-border fraud. It sets out to: improve the exchange and analysis of information shared by the member states’ tax administrations and with law enforcement bodies; strengthen Eurofisc, a network of national tax officials for the exchange of information on VAT fraud; It also introduces new instruments for cooperation such as administrative enquiries carried out jointly. “Improving cooperation between our tax administrations is essential if we are to clamp down on tax fraud”, said Vladislav Goranov, minister for finance of Bulgaria, which currently holds the Council presidency. “Unacceptably high amounts of VAT revenue are being lost, and this directive will help fix the problem.” Council of the European Union      22/6/2018  VAT minimum standard rate set permanently at 15% On 22 June 2018, the Council adopted a directive making the 15% minimum standard rate a permanent feature of a new VAT system. The minimum standard rate prevents excessive divergence in VAT rates in the member states. This eliminates the risk of distortions of competition through lower VAT rates that would have an impact on cross-border shopping and trade. A 15% minimum standard rate has been maintained on a provisional basis since VAT rules for the EU single market were first applied in 1993. It was last extended in May 2016 for two years, expiring on 31 December 2017. Proposals aimed at replacing the current ‘transitional’ VAT arrangements with a definitive VAT system and reforming VAT rates are meanwhile under discussion. The Commission issued proposals in January and May 2018. The directive was adopted at a meeting of the Economic and Financial Council, without discussion. May 2018 directive on the minimum standard VAT rate