The Council recently adopted a regulation laying down the rules for the implementation of directive 2006/112/EC on the common system of VAT, in particular in respect of taxable persons, the supply of goods and services, and the place of taxable transactions. The regulation, which recasts regulation 1777/2005, clarifies certain aspects of the VAT directive (2006/112/EC) with the aim of ensuring better compliance with the objectives of the internal market.

At the same meeting, Council also reached agreement on a package of measures aimed at strengthening economic governance in the EU, and more specifically in the euro area. As part of the EU's response to the challenges posed by the sovereign debt crisis, the measures are aimed at enhancing budgetary discipline in the member states and addressing macroeconomic imbalances within the EU.