Europe must create a tax environment which allows businesses to create jobs, the EU’s tax commissioner Algiras Semeta has told the Institute of International and European Affairs in Dublin.

Calling on countries to cut red tape so that businesses could invest in research and training, he said Europe must create a tax environment where it pays to work.

“Over the last few months, there has been a general trend observed in the member states towards fundamental tax reforms. However, there is still scope to shift the overall tax burden towards tax bases that are less detrimental to growth and job creation.”

He said most of the tax-related elements of the Irish budget last December were “in line with what the commission recommends for quality tax reforms”.