Situation of the European economy: preparatory report on the broad economic policy guidelines for 2006

The European Parliament adopted its annual report, drawn up by José Manuel GARCÍA-MARGALLO (EPP-ED, ES), on the EU's broad economic policy guidelines for 2006. (Please refer to the summary dated 21/03/2006).

In addition, the Parliament calls on the Commission, the Council and the Member States to adopt those recommendations included in the Parliament's last three reports on the BEPGs but not yet taken on board, namely, the transposition of the internal market directives; the adoption of deficit-reducing measures by Member States with excessive deficits; a common communication policy on citizens' insecurity as regards globalisation; a structural reform action plan, comprising the obstacles to tackle, the actions to take, and a time line; the full implementation of the SME Charter, in particular as regards a more favourable tax regime and more investment in research and innovation for SMEs.

The Commission is asked to investigate the feasibility of adopting EC legislation in order to achieve a uniform definition of tax residence - applicable to EU citizens resident within and outside the EU - linked to the concept of citizenship of the EU; an EU Convention on double taxation (mirroring Article 293 of the EC Treaty); and the inclusion in EC law of the principle of non-discrimination with regard to taxation as defined in the judgments of the Court of Justice of the European Communities.