The European Commission has reaffirmed its determination to combat fiscal fraud.

Commissioner Laszlo Kovacs said a few days ago that Brussels “needs to convince France, Malta and Cyprus on the need for a reform in the VAT systems in the EU by December”.

Total fiscal fraud inside the EU is thought to be around two per cent of the EU’s GDP.

“From now to December’s Ecofin, we should be able to reach a political agreement on the ways how to combat fiscal fraud,” Mr Kovacs told Portuguese Finance Minister Teixeira dos Santos, whose country presides over the EU till December.