EUROMOD – Technical Support for the Development and Update of EUROMOD

Task

The Fiscal Policy Analysis Unit (JRC B.2) of the Directorate Growth and Innovation assesses tax policies and structural reforms to support the action plan for a fair and efficient taxation in the EU. Tax policies of all member states are analyzed with respect to efficiency and equity as well as the associated regulatory burdens. The key modelling tool is EUROMOD, the microsimulation model for the European Union, which is being used to address broad thematic issues as well as to support policy recommendations for the fiscal and economic surveillance carried out by the Commission services in the context of the European Semester.

EUROMOD simulations cover direct tax liabilities and monetary benefits paid/received by individuals and households in the Member States of the EU. The maintenance and development of the model is split between the JRC and the National Teams placed in each Member State. The JRC "centralised tasks" such as coordinating the work of the National Teams in order to ensure cross country consistency and, in various cases, coding into EUROMOD the different tax benefit rules (or at least providing support to National Teams for these tasks). National Teams role is of primary importance as they collect and document each year the national tax-benefit rules in place and code them into EUROMOD. National Teams also prepare the EUROMOD input datasets by performing the splitting of social benefits via imputation procedures or using complementary national SILC data.

Data and other sources

The most recent wave of the European Statistics on Income and Living Conditions survey (EU-SILC).

Results

Generation of the EUROMOD input data, uprating indexes, and collection and documenting sets of policy rules in place, updating the EUROMOD-Model, and testing the EUROMOD model.

More information on EUROMOD: https://euromod-web.jrc.ec.europa.eu/