On 13 June 2019, Rapporteur Karl-Heinz Lambertz (Belgium, SOC) presented a report on the fair distribution of taxes in trans-frontier areas to the members of the Congress Governance Committee in Várpalota, Hungary.

"Trans-frontier regions are at the heart of European integration and are factors of circulation and
co-operation", said Mr Lambertz. In Council of Europe member States, in the absence of bilateral agreements, trans-frontier workers pay taxes in the country where they work, and not in the country where they reside. "This leads to malfunction because, in some border regions, the financing of public services is totally insufficient, due to exclusive taxation in the country of employment” he underlined.

The fair distribution of tax revenues between communities on both sides of the border – places of employment and places of residence – is a crucial issue for the development of trans-frontier areas. The report, approved by the Governance Committee, in places of residence to develop cross-border employment opportunities and mobility. With regard to the places of employment, local authorities are encouraged to promote co-development but also to contribute to the financing of public services in the workers' places of residence.

At national level, this also involves harmonising trans-frontier taxation criteria on a common principle in order to distribute tax rights in a coordinated way.

The report will be submitted for adoption at the 37th Congress Session in Strasbourg (29-31 October 2019).