CYIL vol. 15 (2024)

CYIL 15 ȍ2024Ȏ THE INFLUENCE OF THE OECD ON EU LEGISLATION OECD’s global relations strategy and the EU enlargement strategy. Additionally, the project aligns with the economic and investment plan for the Western Balkans and the Green and Digital Agenda for the Western Balkans. 14 It’s not new that the EU and OECD cooperate within the Southeast European region, and therefore, the OECD has decided to expand its support to align policies in the region with EU procedures and international standards to facilitate competitive, sustainable, and inclusive economic growth. Assistance will focus on three key areas: 15 • Firstly, it involves policies crucial for competitiveness, such as trade, investment, skills, and digitalization. Highly inclusive approaches facilitating stakeholder engagement should be applied, with reform measures appearing to be the ultimate goal. • Through the Small Business Act Assessment, 16 the Western Balkans and Turkey are provided with a mirror, assessing small and medium-sized enterprises (SMEs) that have a significant impact in the region. These businesses constitute 99 percent of all firms and create 75 percent of jobs. As a result, governments will be better equipped to respond, have better data for reforms, and improve their international integration. • In line with the EU’s long-term goals, this project also focuses on supporting the green transition to a circular economy in the region. This project is a nice example of how the goals of the EU and OECD are similar and how their mutual cooperation can be beneficial. Despite some authors’ expressions of skepticism and imperfect cooperation, it should be noted that compared to other international organizations and their collaborations, this one appears to be very synergistic, beneficial, and natural. 2. Effects of OECD Activity on EU Law As we attempted to outline in the preceding sections of the article, the OECD is not just any international organization that collaborates with the EU. The relationship between these two organizations is much stronger. They cooperate in what I would dare to call a sisterly manner and mutually influence each other. The OECD, as an organization focused on working with data, is an excellent ally for the European Union in shaping rules and setting policies. We will examine whether OECD activity, specifically its conclusions and initiatives, had a specific impact on EU standard-setting. The effects of the activity of another international organization can be a significant component of EU institution decision-making and an interesting basis for creating various acts. Together, let’s delve into the world of finance and taxation, where the OECD launched the BEPS project some time ago. But what is BEPS, and why did the OECD decide to analyze this sphere? How did the European Union respond to it? 14 OECD, 2024. The OECD and South East Europe. (cit. 2024-02-27). Available online: https://www.oecd.org/ south-east-europe/. 15 OECD, 2021. Competitiveness in South East Europe 2021: A Policy Outlook . Competitiveness and Private Sector Development, OECD Publishing, Paris. (cit. 2024-02-27). Available online: https://doi.org/10.1787/dcbc2ea9-en. 16 OECD, 2022. SME Policy Index: Western Balkans and Turkey 2022: Assessing the Implementation of the Small Business Act for Europe . SME Policy Index, OECD Publishing, Paris. (cit. 2024-02-27). Available online: https:// doi.org/10.1787/b47d15f0-en.

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