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Proposed Audit Revisions Threaten €695 Million In Annual State Revenue

by THEFUTURE.TEAM

November 24, 2025

Overview Of The Proposed Changes

Data presented to the Parliament by Tax Official Sotiris Markidis signals a potential risk of €695.2 million in annual state revenue. The risk stems from a proposed regulatory change that would allow 60,399 companies—operating with annual turnovers up to €900,000 and asset values of up to €500,000—to undergo a simplified review of their financial statements rather than a comprehensive audit with certified accounts.

Implications For Smaller Enterprises

Under the current framework, firms with turnovers of up to €200,000 and assets up to €500,000 are subjected to a streamlined review process. The proposed expansion of the turnover threshold by an additional €700,000 would considerably broaden the pool of companies eligible for this reduced oversight. Proponents argue that this shift benefits small businesses; however, the looming reduction in rigorous auditing is poised to cut significantly into state revenues.

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Projected Financial Impact

According to figures submitted by the Tax Department to the Parliament, the overview method—implemented since 2023—currently applies to 51,075 businesses. In 2022, these entities contributed a combined €227.8 million, with forecasts for the current year reaching €306.8 million. If the turnover limit increases to €300,000, the number of eligible companies would rise to 54,549, potentially elevating state revenue from these firms from €301.7 million in 2022 to an estimated €414.3 million this year.

Threshold Adjustments And Revenue Projections

Further adjustments to the turnover threshold would have even more pronounced effects. A €500,000 threshold could subject 57,962 companies to the overview process, with projected revenues of €545 million. An increase to €600,000 could involve 58,888 companies and yield approximately €595 million, while a €700,000 threshold would include 59,543 companies, contributing an estimated €633.1 million. The scenario with a €900,000 turnover cap is the most expansive—affecting 60,399 companies and potentially generating €695.2 million in state revenue.

Debate Among Key Stakeholders

Prominent institutions such as the Tax Department, the Central Bank, and the Bank Association have expressed reservations regarding the legislative changes. The upcoming session in the Parliamentary Trade Committee, led by advisers such as K. Chatzigiannis and N. Sykas, will address these concerns. A pivotal point of discussion will be the proposal to set the annual turnover threshold for companies undergoing a mere review at €300,000, thereby ensuring that larger firms—whose financial contributions to the state are more significant—remain subject to full audits.

Looking Ahead: Financial Reporting Oversight

Additionally, clarity is expected regarding the composition and supervisory authority of the Council for the Determination of Financial Reporting Standards. This body is charged with establishing, monitoring, and evaluating the financial reporting practices of small-scale enterprises. While the Securities and Exchange Commission has signaled its readiness to oversee the council, the legal service currently favors placing this responsibility under the Ministry of Finance.

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EU Agrees On Major Overhaul Of Financial Market Supervision

by THEFUTURE.TEAM

October 9, 2026

European Union finance ministers have reached agreement on a sweeping package designed to strengthen oversight of the bloc’s financial markets, in a move aimed at reducing fragmentation and improving the flow of capital across borders.

A Push To Deepen Capital Markets

The Market Integration and Supervision Package, or MISP, would grant the European Securities and Markets Authority direct supervision over major market operators that are currently regulated by national authorities. The reforms are intended to make Europe’s capital markets more integrated, more efficient and better able to channel savings into productive investment.

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According to the Irish presidency, the package is meant to help savings and investments move more freely across the European Union, improving access to finance for companies while giving households broader opportunities to earn returns on their savings.

What The Reform Would Change

Under the new framework, ESMA would take direct oversight of key trading venues, clearing houses, securities settlement bodies and crypto-asset service providers. The package would also establish a permanent, independent executive board within the regulator, strengthening its institutional capacity.

Market operators would be able to opt into a new EU-wide operating framework. In parallel, the reforms would seek to make national supervision more consistent and update rules governing trading, transaction completion, investment management and the use of blockchain technology.

Why The Agreement Matters

Supporters of deeper capital markets argue that Europe has long paid a price for regulatory inconsistency. While many rules are harmonised across the bloc, differences in enforcement and supervision have contributed to a patchwork system that can make cross-border investment slower and more costly.

A more integrated framework, proponents say, could lower costs for companies seeking funding and broaden the menu of investment options available to savers and institutional investors alike.

Outstanding Questions Remain

Despite the broad agreement, some important details remain unresolved. Trading venues operated by Deutsche Börse, the company behind the Frankfurt stock exchange, may remain outside ESMA’s direct supervision.

Euronews previously reported that Germany had secured an exemption for Deutsche Börse’s domestically focused trading venues, leaving part of the system under regional supervision. The latest announcement did not clarify whether that arrangement will stand.

A Step Forward For The Savings And Investments Union

Dutch Finance Minister Eelco Heinen welcomed the deal, calling it a major advance for the Capital Markets Union and saying Europe had made more progress in 10 months than in the previous 10 years.

The agreement is an important milestone in the Savings and Investments Union, the EU’s broader effort to channel more of Europeans’ savings into investments that can support growth, innovation and competitiveness across the bloc.