Pierre Moscovici, the EU Commissioner for Economic and Monetary Affairs, has accused Malta, along with other member states, of being “fiscal black tax holes” and vowed to place “intelligent pressure” on countries who employ aggressive tax regulations.

“Obviously many EU countries are places where aggressive tax optimisation finds a place… you realize that the tax flows are going to countries like Ireland, the Netherlands, Luxembourg, Malta, Cyprus.”

Moscovici has previously criticised the aggressive tax planning employed by the countries, with the same states narrowly avoiding being considered as tax havens by union in a deadlocked vote which took place in December.

ECOFIN is expected to meet next week to continue discussions over the 17 countries that were listed a tax havens.

““Any reduction of the blacklist can be read as a weakening and there is no secret, at the next meeting of EU finance ministers, the list will melt,” Moscovici said.

Discussions will also take place concerning drastic reforms to the VAT system, which will see the minimum rate of 15% maintained, but also open doors to members states to lower rates in four distinct categories.

Countries will have to ensure an average of 12% VAT to prevent tax competition between states.