It also called for a clampdown on what it called "harmful tax competition", where member states compete with each other to provide the most benign tax environment.

BBC: Tax avoidance targeted by European Union

Though his definition of harmful tax competition does not extend to basic rates of corporation tax, it would still target national tax breaks aimed at bringing in foreign investors.

ECONOMIST: Farewell, pan-European tax harmony?

The commission says this may reflect harmful tax competition.

ECONOMIST: European Union

The region may not be far away from a potentially harmful bout of tax competition, which would no doubt attract the ire of more established EU members such as Germany and France.

ECONOMIST: Will more of eastern Europe adopt flat-rate tax regimes?

OECD's officials are adamant that they are not against tax competition as such, merely against the harmful variety.

ECONOMIST: Tax