Competitiveness and Advanced Sustainability in Systems of EU Taxation

The EU TAX COMPASS project is developed in response to the FISC-2025-EUTO-COMP call for the next phase of the EU Tax Observatory. Its objective is to create a robust network of tax-policy oriented contributors to animate an EU driven tax policy debate focused on growth, competitiveness contributing to broader EU priorities, such as fairness, the green transition and behavioural changes. The network will generate high-quality and evidence-based policy research providing for mid-term perspectives and practical policy recommendations. The project addresses four interrelated themes: (1) Interactions Between Taxation and the Wider Competitiveness Framework, (2) Taxation and business activity: incentives, investment, and good policy design, (3) Green Taxation for Climate, Competitiveness, and Fairness, and (4) Modernising VAT for a Competitive Single Market. Methodologically, EU TAX COMPASS pursues an interdisciplinary approach bringing together leading research centres in economics, business and law with significant expertise in EU and (inter)national tax policy. The consortium’s research will combine quantitative analysis (including of administrative microdata), legal and institutional assessments, simulation modelling, and qualitative analysis synthesising knowledge from existing scholarly work and policy analysis. In addition, the project will establish a multidisciplinary Network of Experts to ensure continuous dialogue with policymakers, business, practitioners, and academics. The Network will ensure that the dialogue resonates with the public at large. The Network will also include non-EU participants. Results will include policy and research papers, and high-impact events, all feeding into and disseminated through the EU Tax Observatory’s repository. By fostering a structured debate and providing actionable recommendations, the project will strengthen the EU’s capacity to design efficient, fair and competitive tax systems.