Written by Pieter Baert.
Value added tax (VAT) is a crucial revenue stream for both EU and national budgets. However, substantial losses resulting from domestic and cross-border VAT fraud make its enforcement an essential priority amid growing financial demands. Fraudsters, who are regularly part of organised criminal networks, exploit weaknesses in the VAT system, causing government revenue losses worth billions of euros.
Over the years, the EU and its Member States have taken a variety of measures to close VAT loopholes, adopting innovative digital tools to facilitate exchange of information and detect and stop fraudulent transactions as fast as possible. Member States have also committed to cooperating more closely, through bodies such as the European Public Prosecutor’s Office and Eurofisc; this has led to the successful dismantling of major VAT fraud networks responsible for billions of euros of damage. While progress has been made, the involvement of multiple actors in combating VAT fraud has raised questions about how to optimise cooperation between these bodies.
European Commissioner for Taxation, Wopke Hoekstra, has been tasked with maintaining ambitious efforts to combat tax fraud in the EU, while the Commissioner for Budget, Piotr Serafin, is leading a review of the EU’s anti-fraud structures with a view to enhancing efficiency and cooperation.
Read the complete briefing on ‘Filling the gap: The EU’s fight against VAT fraud‘ in the Think Tank pages of the European Parliament.
Example of MTIC fraudA German Heron TP drone flew in military- and civilian-controlled airspace between Germany and the Netherlands on 3 February 2025, marking another step towards remotely piloted aircraft systems (RPAS) being allowed to fly safely alongside commercial airlines and other manned aviation.
The round-trip test flight built on previous work by the European Defence Agency (EDA), which has been supporting its Member States in the safe integration of RPAS into general air traffic (GAT) airspace. It follows a similar milestone flight between France and Spain in December 2021. But this year, the flight took place in upper airspace for the first time.
EDA initiated the project through a call for tender, which was awarded to a consortium led by the German Aerospace Center (DLR) together with the Netherlands Aerospace Centre (Royal NLR) and the German armed forces. The German air force provided the Heron TP drone for testing and the project also received the support of the German military aviation authority.
The Heron TP, which with its 26-metre wingspan can fly for more than 24 hours, took off from Schleswig in northern Germany, initially climbing in military-controlled airspace. From there, it was handed over to German air traffic control and EUROCONTROL Maastricht Upper Area Control Centre, before transitioning into Dutch airspace at more than 8,500 metres (28,000 feet) above sea level, a region primarily occupied by commercial aircraft.
The German Heron TP drone is a joint Israeli-German project developed by Airbus and Israel Aerospace Industries, designed for intelligence, surveillance, and reconnaissance (ISR).
More test flights plannedOne of EDA’s goals, along with the European Union Aviation Safety Agency (EASA), is to enable the full integration of large RPAS into general air traffic airspace. By testing, evaluating, and refining the procedures, the project is helping to bridge the gap between ‘accommodation’ or ‘mitigation’ measures and full integration. EDA, working closely with EASA and EUROCONTROL, as well as national aviation authorities, is laying the foundation for a more secure and efficient airspace across Europe.
The German-Dutch mission implemented lessons learned to further refine the procedures to make such cross-border flights more commonplace. With two more test flights planned in the coming weeks, the focus is on demonstrating that mitigation measures developed so far are ‘aircraft agnostic’ — meaning that they work across different RPAS platforms, including civilian drones. The aim is that the full integration of RPAS into shared airspace will soon be possible. Unlike the previous mission between France and Spain, which used a different drone model, February's test helped confirm that integration procedures work across various aircraft, not just a single RPAS design.
Another objective of the test flights is to trial procedures in the event of a loss of communication between the remote pilot and the aircraft and to operate the drone at its maximum altitude. These flights are planned to take place over the coming weeks.
EDA’s broader roleFounded in 2004, the Agency helps foster defence cooperation across Europe. It serves as the central hub for EU countries aiming to develop their defence capabilities together. EDA’s activities span from harmonising requirements and developing operational capabilities to research, technology, innovation, training, and supporting Common Security and Defence Policy operations. The agency also works closely with the European defence industry to strengthen Europe’s technological and industrial base.
Citizens are calling on the European Union to curtail the influence of the platform X on the federal election in Germany. Many citizens have written to the President of the European Parliament on this subject since January 2025, asking her to act now to ensure that X meets its obligations concerning transparency, content moderation and risk mitigation during elections.
We replied to citizens who took the time to write to the President:
Main elements of our reply Enforcing the Digital Services Act (DSA)The European Commission is responsible for overseeing the enforcement of the Digital Services Act. In December 2023, the Commission opened formal proceedings against X to assess whether it is meeting its obligations concerning transparency, content moderation and risk mitigation during elections.
Further action may also be taken at national level by the German Digital Services Coordinator.
What is the European Parliament doing?The European Parliament is committed to safeguarding democracy and ensuring that online platforms operate responsibly.
In December 2024, the European Parliament set up a Special committee on the European Democracy Shield. The committee will assess policies aimed at preserving the fairness and integrity of elections. It will focus on interference in democracy and elections through very large online platforms, such as X.
On 21 January 2025, the European Parliament held a debate on the need to enforce the Digital Services Act to protect democracy on social media platforms, including against foreign interference and biased algorithms. You can watch the debate in all official EU languages and access the full text of the debate in the original language of the speakers.
BackgroundCitizens often send messages to the President of the European Parliament expressing their views and/or requesting action. The Citizens’ Enquiries Unit (AskEP) within the European Parliamentary Research Service (EPRS) replies to these messages, which may sometimes be identical as part of wider public campaigns.