In an increasingly complex international trade landscape, clarity and confidence have become essential.

While policy shifts, geopolitical tensions and regulatory adjustments add layers of uncertainty to global markets, they also reinforce the need for reliable guidance and forward-thinking professional advice.

For businesses across the Mediterranean, the accounting profession offers just that: a steady compass in volatile seas.

Based on the latest UN Trade and Development (UNCTAD) report, this article examines how Mediterranean accountants can lead the way in helping businesses adapt, diversify, and thrive — not despite uncertainty, but because they are prepared for it.

 

⚠️ Uncertainty is the new tariff – and it’s worse

According to UNCTAD, uncertainty is often more disruptive than tariffs. Firms may adapt to rising costs, but they cannot effectively plan around ambiguous or shifting trade policies.

Recent US trade policy shifts are a vivid example. The announcement of new tariffs in early 2025 created a surge in volatility before the tariffs even took effect, as firms scrambled to pre-empt potential costs. Once the policies were implemented, volatility decreased — not because the environment improved, but because the rules were finally known.

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🧱 Structural risks for small firms and vulnerable economies

The burden of trade policy uncertainty is not shared equally.

• Small firms lack the liquidity, logistical capacity or flexibility to front-load exports or shift transport modes;
• Least developed and lower-income countries (many in the wider Mediterranean neighbourhood) are especially exposed, as they depend on preferential trade programmes and have limited capacity to interpret, anticipate or react to changes in rules of origin, tariffs or transshipment conditions.

For Mediterranean economies, this poses both a macro-level risk and a micro-level opportunity for intervention.

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🔎 The role of accountants: from compliance to strategic advisory

In this context, accountants must go beyond their traditional roles. Trade policy uncertainty impacts:

• Inventory and cashflow management;
• Export planning and pricing;
• Financing needs and investment forecasting;
• Supply chain modelling and business continuity strategies.

Professional accountants are ideally placed to:

• Guide SMEs through these complexities;
• Assess exposure to different markets or agreements;
• Help firms adapt to shifts in trade costs and logistics;
• Monitor geopolitical risks with financial impact.

For FCM - Fédération des Experts Comptables Mediterranéens / Federation of Mediterranean Accountants and its member bodies, the challenge is clear: build the capacity of the profession to serve as strategic advisors in a volatile global trade environment.

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🌍 Diversification and trade agreements: essential shock absorbers

UNCTAD data shows that countries and companies with diversified export markets suffer less from trade volatility. Similarly, exporters operating under regional or bilateral trade agreements tend to enjoy more stable conditions.

Mediterranean economies, many of which are:

• Integrated into value chains that include the EU, UK, US, Asia...;
• Bound by asymmetrical trade agreements;
• Dependent on concentrated export markets,

...must therefore prioritise market diversification and stronger participation in rule-based trade frameworks.

Accountants can directly support this agenda by identifying:

• Opportunities for export redirection;
• Market-specific compliance risks;
• Funding tools to support diversification efforts.

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🛡️ Towards trade resilience: what can be done?

UNCTAD proposes concrete recommendations to mitigate policy uncertainty:

• Provide advance notice of policy changes;
• Base trade measures on transparent, data-driven logic;
• Strengthen dispute settlement mechanisms;
• Encourage international coordination;
• Promote export diversification.

For FCM, this means also:

• Advocating for greater inclusion of accountants in policy advisory groups;
• Supporting capacity building for SMEs in trade finance and compliance;
• Encouraging governments to consult professional bodies when defining rules of origin, tax implications, or sustainability criteria in new trade measures.

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✅ Conclusion: The Mediterranean needs more than trade – it needs trusted professionals

As trade becomes increasingly political, unpredictable and fragmented, the accounting profession must act as a stabilising force. Mediterranean economies cannot afford to be passive recipients of global disruptions.

Through informed advisory, technical competence and ethical leadership, accountants can help build resilient export strategies, sound financial planning, and credible long-term investment frameworks — especially for SMEs.

The FCM reaffirms its commitment to promoting a profession that protects not just compliance, but the future of Mediterranean businesses in an increasingly unstable global marketplace.

🔍 Glossary of Key Terms

🟠 Trade Policy Uncertainty The unpredictability surrounding changes in trade rules, tariffs, regulations, or agreements that affect international commerce. It increases risks for businesses and governments by making planning and investment decisions more difficult.

🟠 Tariff A tax imposed on imported goods, often used to protect domestic industries or as a tool in trade negotiations.

🟠 Value Chain The full range of activities involved in producing and delivering a product or service, from raw materials to final customer. Global value chains refer to these processes crossing multiple countries.

🟠 Front-loading A business strategy of accelerating shipments or purchases ahead of expected changes in trade conditions (e.g., before new tariffs are imposed).

🟠 Rules of Origin Criteria used to determine the national source of a product, relevant for trade agreements, tariffs, and customs procedures.

🟠 Trade Diversification The process of expanding the number and variety of export markets to reduce dependency on a single country or region.

🟠 Regional Trade Agreement (RTA) A treaty between two or more countries that facilitates trade by reducing tariffs and setting shared rules. Examples include the EU, USMCA, or the African Continental Free Trade Area.

🟠 Least Developed Countries (LDCs) Countries classified by the United Nations as having the lowest indicators of socioeconomic development, often facing special challenges in accessing international markets.

🟠 Strategic Ambiguity The deliberate use of vague or undefined policy measures by governments to retain flexibility, negotiate leverage, or avoid political backlash—often at the expense of predictability for businesses.

Introduction: Beyond Theory, Into Daily Practice

Artificial Intelligence (AI) is no longer a concept reserved for future planning — it is already in active use across accounting offices, audit firms, tax practices, and public finance departments. In the Mediterranean region, professionals are beginning to deploy AI in practical and measurable ways, improving efficiency, precision, and the value of services provided. Yet these applications come not only with opportunities, but with complexity. Each use case demands a balance between innovation and caution, automation and accountability.

This article explores real and emerging applications of AI in the accounting profession, highlighting their benefits and risks within the Mediterranean context. It also considers how legislation and professional self-regulation can help secure an ethical and sustainable transformation.

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1. Automated Document Processing and Classification

AI tools are increasingly used to extract, categorise, and structure financial data from invoices, contracts, tax documents and bank records. These solutions reduce manual workloads and free up professionals for more strategic tasks.

Opportunities and Benefits:

• Faster onboarding and processing of large volumes of documents.
• Fewer manual errors and more consistent data structuring.
• Increased operational scalability, especially during peak periods.

Risks and Safeguards:

• Risk of misclassification if models are poorly trained or insufficiently localised.
• Client data security requires strong encryption and infrastructure safeguards.
• Manual validation remains essential for compliance-critical processes.

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2. Natural Language Reporting and Advisory Narratives

Generative AI is now capable of producing readable summaries of financial results, projections, and audit findings. These outputs are often used as first drafts, refined and approved by professionals.

Opportunities and Benefits:

• Time saved in drafting internal and client-facing documentation.
• More accessible communication of complex financial insights.
• Standardisation of tone and structure in recurring reports.

Risks and Safeguards:

• Risk of overconfidence in machine-generated text, which may be factually incorrect.
• Professionals must fact-check and remain responsible for final versions.
• Clients should be informed about AI’s role in generating documentation.

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3. Continuous Monitoring and Anomaly Detection

AI systems are now being applied to analyse transactions in real time, detecting patterns that deviate from expected behaviour and triggering alerts.

Opportunities and Benefits:

• Early warning of potential fraud or data inconsistencies.
• Real-time internal control and assurance capabilities.
• Increased confidence among clients and stakeholders.

Risks and Safeguards:

• High volume of false positives can lead to inefficiencies.
• Anomalies must be defined with contextual understanding of business norms.
• Auditable records and clear human oversight remain essential.

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4. AI-Augmented Tax Research and Legal Interpretation

AI-powered tools trained on legal and fiscal content support professionals in navigating complex, evolving legislation and jurisprudence.

Opportunities and Benefits:

• Faster access to relevant cases, rulings, and articles.
• Enhanced drafting of technical memos and compliance notes.
• Improved competitiveness of smaller firms.

Risks and Safeguards:

• Inaccurate legal interpretation due to generalised or non-localised training data.
• Final legal responsibility always rests with the professional.
• Clear jurisdictional boundaries must be built into AI tools.

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5. Advisory Dashboards and Client-Facing Analytics

AI enables the generation of interactive dashboards that offer real-time KPIs, visual reports, and customised financial scenarios for clients.

Opportunities and Benefits:

• Accountants become strategic partners in client decision-making.
• Improved client engagement and loyalty.
• Better insights into business performance and forecasting.

Risks and Safeguards:

• Outputs may reflect biased data or poor assumptions.
• Professionals must validate and contextualise automated insights.
• Information must be explained in client-accessible language.

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A Mediterranean Lens: Gaps and Potential

While some Mediterranean firms are adopting these tools, many face significant barriers: language limitations in AI interfaces, low digital literacy among SMEs, and the absence of affordable, locally relevant platforms. At the same time, the region enjoys strong ethical traditions, close professional networks, and increasing alignment among national bodies.

To enable equitable adoption across the Mediterranean:

• AI tools must support regional languages and accounting standards.
• Institutes should provide accessible training and shared platforms.
• Regional cooperation can foster joint innovation and resource pooling.

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The Role of Legislators and Professional Bodies

As AI’s influence grows, legislators must strike a careful balance between enabling innovation and protecting the public interest. The EU AI Act offers a promising framework, but its national implementation must be adapted to local professional realities.

Professional bodies have a parallel duty to:

• Publish clear, practical ethical guidelines on AI use.
• Integrate AI governance into existing quality control systems.
• Promote transparency and client education around AI involvement.
• Encourage knowledge sharing and standard-setting within the profession.

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Conclusion: Shaping the Transition Together

AI is no longer on the horizon — it is embedded in the daily practice of the accounting profession. For Mediterranean accountants, this is a moment of strategic responsibility. With pragmatic implementation, ethical safeguards, and regional solidarity, AI can become a trusted ally — not to replace human expertise, but to enhance it.

Now is the time to ensure that technology serves the profession’s values and reinforces its vital role in public accountability, client service, and economic stability.

• Introduction The Pan-European Public Procurement Online (Peppol) framework is a cross-border eProcurement and eInvoicing infrastructure originally developed to facilitate electronic communication between businesses and public administrations in Europe. While its name reflects its European origin, Peppol has grown into a global model for digital interoperability in public procurement. This article traces its evolution—from theoretical foundations to its operational model—analyses the regulatory architecture underpinning its implementation, and examines current and potential adoption in the Mediterranean region.

  1. Origins and Early Development The Peppol initiative emerged from the European Union’s ambition to streamline and digitise public procurement processes across Member States. Initiated in 2008 under the EU's Competitiveness and Innovation Framework Programme (CIP), it responded to a clear need: ensuring seamless electronic exchange of procurement documents across different national systems.

  Inspired by the conceptual work of the eProcurement Multistakeholder Forum and the European Interoperability Framework, Peppol’s design was based on open standards and the principle of mutual recognition of digital documents. Early pilots in Norway, Denmark, and Italy helped shape practical implementations and validate the concept.

  At its core, Peppol was conceived not as a centralised platform, but as a federated infrastructure rooted in open interoperability principles, drawing on earlier academic and policy work around semantic standards, service-oriented architectures, and XML-based document schemas. Its implementation leveraged established technologies such as the Universal Business Language (UBL) and was informed by early efforts to create modular, reusable frameworks for cross-border public service delivery. This foundation allowed Peppol to evolve into a technically neutral, scalable network that could integrate diverse national systems while preserving local autonomy.

  2. From Pilot to Infrastructure: Building the Legal and Governance Framework Peppol transitioned from an EU-funded project to a sustainable legal and operational structure with the creation of OpenPeppol AISBL in 2012, a non-profit international association responsible for governance and evolution of the Peppol specifications.

  The legal foundation of Peppol includes:

  • Directive 2014/55/EU on electronic invoicing in public procurement, which requires EU Member States to accept electronic invoices conforming to the European standard (EN 16931).
  • Regulation (EU) No 910/2014 (eIDAS Regulation), which provides a legal basis for cross-border trust services and secure digital identities, integral to Peppol’s operation.
  • Peppol BIS (Business Interoperability Specifications) and Service Provider Agreements, which define the technical standards and governance rules for participants in the Peppol network.

  Countries like Norway, Denmark, and the Netherlands were early adopters and promoters of Peppol-compliant systems, helping to create a mature and proven environment for other jurisdictions to emulate.

  3. Peppol as Norm and Policy Instrument Peppol is not a single platform but a network of Access Points that use common specifications to exchange e-documents. Its architecture enables interoperability without centralised control. It embodies policy objectives such as:

  • Reducing administrative burdens and transaction costs.
  • Enhancing transparency and auditability in public procurement.
  • Increasing participation of SMEs in public tenders.
  • Supporting cross-border business within the EU single market.

  Its voluntary but standardised adoption model allows both public and private sector entities to gradually join the network under a shared governance framework.

  4. Benefits and Challenges

  Pros:

  • Interoperability: Enables different systems to communicate using common protocols.
  • Scalability: Can be used across borders and sectors.
  • Efficiency: Speeds up processing times, reduces paperwork.
  • Security and trust: Leverages eIDAS and certification processes.
  • Economic impact: Studies show up to 1% of GDP gains possible through increased efficiency and up to 1% via improved tax collection.

  Cons:

  • Implementation complexity: Requires system upgrades and partner onboarding.
  • Standard interpretation: National adaptations can cause interoperability friction.
  • Adoption asymmetry: Some Member States and sectors lag behind.

  5. Extending Peppol: From Four-Corner to Five-Corner Model Peppol was originally structured on a four-corner model, enabling interoperability between sellers, buyers, and their chosen access points. However, governments are increasingly leveraging Peppol for Digital Reporting Requirements (DRR), such as Continuous Transaction Controls (CTC), which require near-real-time reporting of invoice data to tax administrations.

  To meet this need, Peppol supports an extended five-corner model, in which a tax authority acts as an additional recipient of transactional data. This allows the same eInvoice to serve both commercial and regulatory purposes, reducing the compliance burden while improving VAT collection and enabling ESG or other forms of eReporting.

  6. Driving Global Interoperability: The Role of PINT Peppol has developed the Peppol International Invoice (PINT) to address the need for cross-border and cross-continental interoperability. The PINT model includes:

  • A shared element (common to all invoices – ~80%),
  • An aligned element (adaptable legal requirements – ~15%),
  • A distinct element (jurisdiction-specific needs – ~5%).

  This enables businesses and governments in different jurisdictions to exchange invoices seamlessly while respecting local requirements. The PINT model is already being implemented across Asia-Pacific and is poised for adoption in other regions, including the Mediterranean.

  7. Peppol in the Mediterranean: Adoption and Outlook (Expanded)

  Several Mediterranean jurisdictions have begun engaging with Peppol or expressed interest in aligning with its standards. Among the countries where FCM member organisations are based, progress is varied but increasingly strategic:

  • Albania and Kosovo: Recent public sector digitalisation efforts and tax reforms position these countries to explore Peppol-compatible solutions, particularly as they seek closer economic integration with the EU.
  • Bulgaria: As an EU Member State, Bulgaria is legally bound to implement Directive 2014/55/EU. Peppol implementation is in development, particularly for B2G transactions.
  • Cyprus: Aligned with EU Directive 2014/55/EU and progressing in Peppol implementation within its public administration.
  • Egypt: Through the AFAA and national initiatives, Egypt has implemented centralised e-invoicing for B2B and B2G, showing interest in international interoperability standards, including Peppol.
  • France: Actively implementing e-invoicing mandates through the Chorus Pro platform and adopting Peppol BIS formats for public procurement.
  • Greece: Adopted the European eInvoicing standard and is exploring Peppol integration, particularly in the context of ViDA.
  • Italy: One of the pioneers, mandating B2G and now B2B e-invoicing, and leveraging Peppol for cross-border interoperability.
  • Malta: As an EU Member State, Malta is subject to Directive 2014/55/EU on electronic invoicing in public procurement. The country has shown commitment to EU digital integration strategies, and the adoption of Peppol is being explored as part of its efforts to streamline eProcurement and enhance interoperability.
  • Montenegro: A candidate country for EU accession, Montenegro is modernising its public procurement and tax systems. Participation in regional digital initiatives makes Peppol a viable option for future integration.
  • Morocco and Tunisia: Both countries have public finance digitalisation strategies that emphasise interoperability and transparency. Peppol has been referenced in technical cooperation dialogues with EU partners and development agencies.
  • Portugal: An active member of OpenPeppol, with a robust e-invoicing framework in place, including mandatory use of structured electronic invoices in public procurement. Several service providers offer Peppol access points, and integration with European standards is advancing.
  • Spain: While using its own national e-invoicing platform (FACe), Spain has shown interest in broader interoperability and may consider Peppol adoption under EU-wide harmonisation initiatives like ViDA.
  • Turkey: Although not an EU member, its Revenue Administration has developed advanced e-invoicing and e-delivery infrastructures. Discussions are ongoing regarding alignment with Peppol standards for cross-border integration.
  • United Kingdom: Despite Brexit, the UK remains highly active in digital procurement through frameworks like NHS Supply Chain and government eProcurement, with Peppol still widely used in healthcare and supported by ACCA's global digitalisation agenda.

  Anticipated Benefits for FCM Jurisdictions:

  • Facilitated trade and cooperation with EU partners;
  • Enhanced fiscal transparency and automation;
  • Interoperability across public and private sector systems;
  • Stronger alignment with EU digital economy priorities.

  Identified Risks and Considerations:

  • Variation in infrastructure readiness and legal frameworks;
  • Potential need for legislative updates and capacity building;
  • Balancing national systems with cross-border standards.

  Conclusion Peppol represents an effective blend of open standards, legal certainty, and decentralised governance. Its potential in the Mediterranean—particularly for countries seeking closer economic ties with the EU—is considerable. As digitalisation accelerates globally, Peppol offers a pragmatic path to interoperability, transparency, and efficiency in public procurement and beyond. By engaging proactively, Mediterranean countries can future-proof their public finance systems and foster regional integration through trust-based digital infrastructure.

  Technical Glossary

  Peppol Access Point (AP): A certified digital service provider authorised to send and receive electronic documents (e.g., invoices, orders) on behalf of its users within the Peppol network. It functions as a "digital postal service," enabling businesses and public entities to exchange documents across borders using common standards. Access Points operate within a 4-corner model:

  1. The sender sends the document to their Access Point.
  2. The sender’s Access Point routes it to the recipient’s Access Point.
  3. The recipient’s Access Point delivers it to the final recipient. This model ensures secure, standardised, and interoperable communication between different systems and countries.

  eInvoice: A structured digital invoice format (e.g., UBL – Universal Business Language) designed for machine-to-machine processing. It is not a PDF, image, or spreadsheet, and must conform to standardised specifications for validation and automation.

  DRR / CTC (Digital Reporting Requirements / Continuous Transaction Controls): Legal mechanisms requiring real-time or near-real-time reporting of transactional data (e.g., invoices) to tax authorities, enabling faster tax collection and reduced fraud.

  PINT (Peppol International Invoice): A cross-border e-invoicing specification that separates invoice data into shared, aligned, and distinct elements, enabling interoperability between jurisdictions with differing legal frameworks.

  SMP/SML (Service Metadata Publisher / Locator): Components of the Peppol infrastructure that enable access points to discover routing and capability data of recipients, ensuring proper message delivery within the network.

  eReporting: The use of digital mechanisms to comply with regulatory reporting requirements, such as ESG disclosures or tax submissions, often integrated within invoice data flows.

  UBL (Universal Business Language): An open standard developed by OASIS for XML-based electronic business documents. It provides a semantic framework for consistent data exchange in eProcurement and eInvoicing, and serves as the backbone format for Peppol BIS specifications.

Introduction The "VAT in the Digital Age" (ViDA) initiative by the European Commission is a key reform aimed at modernising VAT systems across the European Union (EU). It introduces new requirements such as real-time digital reporting of transactions, mandatory structured e-invoicing, and simplified VAT registration for businesses operating in multiple EU countries. The objective is to create a more transparent, efficient, and fraud-resistant VAT environment. A policy communication titled “Viva la ViDA!”, published in November 2024, reinforced the EU’s commitment to full implementation by 2028.

Although ViDA is designed for EU Member States, its influence extends beyond EU borders—particularly to neighbouring Mediterranean countries. Many of these nations are already pursuing digital transformation in tax administration and are aligning with European standards to support trade, transparency, and regional integration. This article explores how ViDA may affect both EU and non-EU members of the FCM (Fédération des Experts Comptables Méditerranéens) and outlines how accounting professionals can respond to these changes.

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1. Understanding ViDA: The Three Pillars

ViDA is structured around three key pillars:

1. Digital Reporting Requirements (DRR) – Businesses will be required to report cross-border B2B transactions almost in real time to their national tax authorities. This measure is aimed at preventing VAT fraud and improving collaboration among Member States.
2. Mandatory E-Invoicing – Paper invoices and unstructured digital formats will be phased out in favour of machine-readable, structured e-invoices that allow for automation and seamless data exchange.
3. Platform Economy and Single VAT Registration – ViDA simplifies VAT obligations for businesses operating in multiple Member States, especially those providing services via digital platforms. It promotes a single VAT registration system valid across the EU.

Together, these pillars aim to harmonise VAT compliance, reduce administrative burden, and enhance the digital single market.

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2. Implications for EU-Based FCM Jurisdictions

In EU countries that are members of the FCM—such as Italy, France, Greece, Spain, Cyprus, Bulgaria, and Malta—ViDA introduces both compliance requirements and opportunities for modernisation:

• Automation of VAT processes will reduce manual errors, improve transparency, and streamline reconciliation;
• Cross-border harmonisation will support SMEs and larger firms in scaling operations across EU markets;
• New roles for accountants will emerge, positioning them as digital advisors, compliance strategists, and systems integrators.

Professional bodies should:

• Integrate ViDA into academic curricula and CPD programmes;
• Collaborate with national tax administrations to ensure consistent implementation;
• Partner with technology vendors to facilitate adoption of compliant tools.

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3. Opportunities for Non-EU Mediterranean Jurisdictions

Countries outside the EU—such as Egypt, Tunisia, Morocco, Turkey, Albania, and Kosovo—will not be legally bound by ViDA but are nonetheless likely to feel its influence:

• Regulatory alignment with the EU will be important for maintaining access to European markets;
• Modernisation incentives can be drawn from ViDA to update domestic tax frameworks;
• International credibility improves when businesses adopt standardised e-invoicing systems;
• Professional capacity building will benefit accountants trained in ViDA-compatible practices;
• Policy learning from ViDA’s implementation may inform gradual reforms.

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4. Avoiding a Digital Divide

To ensure that ViDA does not widen the digital and regulatory gap between EU and non-EU countries, FCM members should work collaboratively to:

• Create multilingual training initiatives and certifications;
• Support peer exchange between EU and non-EU tax authorities;
• Encourage development of national digital VAT strategies;
• Facilitate partnerships between accounting firms and technology providers.

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5. The Emerging Role of Mediterranean Accountants

ViDA is accelerating a shift in the accounting profession—from traditional compliance roles to leadership in digital transformation. Mediterranean accountants are well positioned to:

• Guide SMEs and large organisations in implementing e-invoicing and digital VAT systems;
• Advise governments on regulatory design and system architecture;
• Bridge the gap between EU regulatory language and national business practice;
• Help test, localise, and deploy scalable digital tools.

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Conclusion

ViDA represents more than regulatory reform—it is a strategic blueprint for digital transformation in taxation. For the Mediterranean region, ViDA opens a path to greater interoperability, improved governance, and renewed relevance for the accounting profession. By embracing these reforms, both EU and non-EU FCM members can strengthen their integration with the European economic space and advance public trust through more transparent and modern tax systems.

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Further Reading and References

• European Commission, Proposal for a Council Directive amending Directive 2006/112/EC as regards VAT rules for the digital age (COM/2022/701 final): 🔗 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52022PC0701
• European Commission, Viva la ViDA! communication (November 2024): 🔗 https://taxation-customs.ec.europa.eu/news/viva-la-vida-2024-11-28_en
• CFE Tax Advisers Europe, Opinion Statement on the ViDA Proposal: 🔗 https://taxadviserseurope.org/project/opinion-statement-fc-6-2023-further-cfe-comments-on-the-eu-commissions-vida-proposals/
• OpenPeppol AISBL, Peppol Overview and Implementation Guidelines: 🔗 https://peppol.org
• Accountancy Europe, Publications on Digital Reporting and VAT Reform: 🔗 https://accountancyeurope.eu/publications/vat-in-the-digital-age-vida/

In a profession shaped by rapid technological transformation, demographic shifts and evolving public expectations, the dual challenges of retaining qualified professionals and driving institutional innovation are converging with increasing urgency. Within the Mediterranean region—marked by cultural richness, structural diversity, and economic asymmetries—these challenges demand coordinated, creative, and context-sensitive responses.

Retaining Talent Beyond Traditional Models

For small and medium-sized accountancy practices (SMPs), which represent a large share of the professional ecosystem in the Mediterranean, talent retention cannot rely solely on conventional levers such as job stability or seniority-based promotion. These mechanisms, while historically effective, are increasingly misaligned with the aspirations of newer generations of professionals who seek purpose, autonomy, and merit-based recognition.

Emerging models of remuneration and career development—particularly those linking individual contribution to profitability, client impact, or innovation capacity—are gaining traction. These models reward initiative, foster accountability, and encourage a stronger entrepreneurial mindset within firms.

Such approaches can be especially effective when they introduce transparency and predictability into the career path, while also recognising the collaborative nature of the profession. They help create environments where professional growth is not constrained by rigid hierarchies, but aligned with demonstrable value creation.

Rethinking Professional Capacity through Shared Infrastructure

While internal incentives are critical, the sustainability of the profession also depends on the strength and adaptability of its institutional backbone. Professional Accountancy Organisations (PAOs) across the Mediterranean face increasing pressure to deliver continuing education, digital infrastructure, and ethical oversight in a cost-efficient and locally relevant manner.

A promising avenue lies in fostering structured partnerships among PAOs within the region. By pooling pedagogical resources, sharing digital platforms, and co-developing standards, PAOs can accelerate their own transformation while reducing duplication and fragmentation. These alliances strengthen both national ecosystems and regional coherence.

Crucially, such partnerships also allow smaller or emerging PAOs to benefit from the experience and assets of more established bodies, levelling the playing field and reinforcing the collective capacity of the profession. This is not merely a question of technical collaboration; it is a strategic imperative for preserving public trust and delivering value to members.

A Mediterranean Response to Global Pressures

The Mediterranean context brings particular nuances to these challenges. The region faces a dual reality: on one hand, vibrant centres of professional excellence and cross-border cooperation; on the other, structural constraints such as underinvestment in education, limited digital reach, or emigration of skilled professionals.

To address these asymmetries, an integrated response is needed—one that combines local innovation with regional solidarity. This includes:

• Developing regional talent pipelines, supported by mobility schemes, mentoring networks, and multilingual training frameworks that reflect the diversity of the Mediterranean.
• Aligning ethical and digital competencies with international standards, while respecting the specific legal, fiscal and cultural environments of member countries.
• Implementing incentive systems within practices that promote transparency, performance orientation, and shared accountability for client service.
• Promoting strategic foresight and thought leadership among PAOs, to anticipate emerging risks and opportunities, from AI regulation to ESG reporting.

Conclusion: A Profession Renewed Through Integration

The retention of talent and the renewal of institutions are not parallel objectives. They are two sides of the same coin. Professionals are more likely to stay and thrive in a system that invests in their growth, values their input, and connects their success to a broader mission. Likewise, PAOs are more resilient when they are rooted in a dynamic, inclusive, and forward-looking profession.

The FCM calls for a renewed Mediterranean vision—one that unites innovation with identity, and local dynamism with regional collaboration. It is through this convergence that the accountancy profession can continue to serve the public interest, nurture the next generation of leaders, and remain a vital actor in the sustainable development of the region.

Interview with Jean Bouquot, President of the International Federation of Accountants (IFAC)

"The Certified Accountant is the most trusted player in the tax ecosystem"

On the sidelines of the UCALP congress held in Lisbon, the President of the world’s most important accountancy organisation provided an overview of the role of the profession in a context of geopolitical crisis and polarisation.

Interview by Nuno Dias da Silva | Photos by Raquel Wise

Contabilista – You assumed leadership of IFAC in November 2024. The presidency of the world’s largest accountancy organisation moved from Morocco to France, i.e., from the African to the European continent. Does this represent a new strategy or will there be continuity in the major objectives?

Jean Bouquot – The presidency of IFAC is a two-year mandate and the transition is always defined by continuity. I served as IFAC Vice-President for two years during Asmaa Resmouki's term, and our current Vice-President, Taryn Rulton, will work with me for two years. This shows how well planned the leadership succession is. Moreover, as Chair of the Board, I work on behalf of the entire profession, as do all the other Board members, regardless of their country of origin.

Contabilista – IFAC is the global voice of millions of Certified Accountants worldwide. Do you feel the weight of responsibility in being the face of an entity representing 180 professional accountancy organisations from 135 countries?

Jean Bouquot – I feel the weight of responsibility to the profession. Being President of IFAC is an incredible honour but requires total commitment in return. Let me add that although I represent IFAC personally with full dedication, I have the pleasure of working with 22 colleagues on the Board who embody the profession’s diversity and global nature in a way no individual could.

Contabilista – "Global", "influential", and "trusted" are the three key words of IFAC’s mission. Do you believe there is global recognition of the profession’s public interest role?

Jean Bouquot – Absolutely. Let me give one example. A recent IFAC report, in partnership with ACCA and the OECD, concluded that 68% of respondents trust information provided by Certified Accountants and tax advisers. This makes us the most trusted players in the tax ecosystem — more so than other important actors, including political leaders. We have earned the public’s trust, and that amplifies our influence in discussions on public financial management. But we must always continue to deserve that trust.

Contabilista – The Portuguese Institute of Certified Accountants (OCC) has been an associate member of IFAC since 2012 and a full member since 2016. What contributions and exchange of ideas do you expect with the Portuguese institution led by Bastonária Paula Franco?

Jean Bouquot – OCC has already achieved great things as part of the IFAC "family". It is actively engaged with various entities in Portugal, including government authorities and regulators. It is working with other accountancy organisations in Europe and beyond to support their goal of joining IFAC, including one of our newest members, the Consejo General de Economistas de España. OCC also plays an active role in three regional organisations: CILEA, the Mediterranean Federation of Accountants (FCM), and the UCALP. As host of two IPSASB meetings, OCC is gaining a reputation as a strong supporter of international standard-setting. All this signals great things to come in the relationship between IFAC and OCC, and I look forward to working closely with Bastonária Paula Franco during my mandate.

Contabilista – UCALP represents accountants from seven Portuguese-speaking countries and territories, totalling over half a million professionals. In what ways can this organisation be an asset within IFAC?

Jean Bouquot – One of UCALP's strengths is its diversity. The geographic, demographic, and economic variety within the Lusophone world enriches member discussions in ways that benefit all participants. Part of UCALP's value to the IFAC "family" lies in the opportunity to engage with the vibrant professional intersection showcased in UCALP's impactful, well-organised, and well-attended events. IFAC, and the profession as a whole, are stronger when our members are more closely connected and united in purpose and action — and this is one of the key outcomes of UCALP's collaborative work.

Contabilista – Before the G20 summit in Rio de Janeiro in November, IFAC called on major economies to prioritise sustainability, transparency, and governance to achieve the UN's Sustainable Development Goals by 2030. Do you believe enough is being done to promote a comprehensive sustainability reporting and assurance ecosystem?

Jean Bouquot – Within the profession, we understand the importance of the 2030 Agenda and the need for high-quality sustainability-related information. We see this as a core part of the profession's public interest mandate. As such, we are strongly committed to moving forward. This includes ongoing advocacy for the adoption and implementation of IFRS S1 and S2, and close involvement with sustainability standards recently finalised by the IESBA and IAASB. We want to ensure that all who use the standards can implement them effectively, and this requires collaboration across the entire reporting and assurance ecosystem. We also believe that regulators should hold unqualified accountants to the same standards and supervision as qualified professionals when applying the standards. That said, there are still many loose ends and some global resistance to the ESG pillars. However, the importance of high-quality information and its role in value creation and long-term thinking remain. We will therefore continue to advocate for high-quality sustainability reporting and assurance in our engagement with the G20 and do all we can to ensure the profession rises to the challenge.

Contabilista – How are organisations, depending on their size, managing the complexity of global sustainability reporting, which is becoming increasingly widespread?

Jean Bouquot – We are seeing a promising trend of professional organisations supporting their members through continuous development in sustainability-related services, including the OCC. These organisations are the first and most important source of support for members aiming to gain or update the qualifications required by the sustainability transformation. IFAC, in turn, works to support these professional organisations. We have also produced a wide range of reference materials and thought leadership on many aspects of sustainability, all available on our website.

Contabilista – The current times are far from peaceful: trade wars, a polarised world, and multiple global conflicts. Do you fear this instability and constant risk may spill over into the profession? Do global problems require local solutions?

Jean Bouquot – Geopolitical crises erode the diplomatic and commercial ties that hold the global economy together. This situation affects the profession, as we are consultants or part of companies across all countries and sectors. However, IFAC is an apolitical body, and the global profession can be a unifying and positive force in uncertain times. Global problems may require local solutions, but we can work towards greater global consistency and connectivity thanks to our ability to navigate technical and cross-cultural issues. We can lead our organisations toward greater resilience and better outcomes through trusted strategic advice. Fighting fraud, corruption, money laundering, tax evasion, greenwashing, and other illegal practices, as well as improving governance in both the public and private sectors, are key ways through which the profession can help enhance stability.

Contabilista – The unstoppable progress of artificial intelligence (AI) is affecting nearly all areas of society. Do you see this new era as a threat or an opportunity for the profession and its professionals?

Jean Bouquot – I do not wish to downplay the anxiety surrounding AI in our profession, but I am optimistic about its role for Certified Accountants and finance professionals. Its main impact will be to free us up to focus on higher-value areas such as advisory services, by automating lower-value tasks. This will enhance our relevance to clients and organisations. All of this depends on our ability to effectively adopt the technology. We must improve our digital skills to keep up with rapid changes in AI tools. Digital literacy is crucial, but we don’t all need to become data scientists! We should collaborate with other functions, such as IT, to complement our own expertise. And we must always consider our professional responsibilities in addressing emerging AI challenges, including cybersecurity, lack of transparency, and bias in AI models.

Contabilista – "Young Leaders Collective" is the name of IFAC’s latest advisory group, including representatives from several countries, among them Portugal. Is the profession attractive enough to draw in new generations entering the job market?

Jean Bouquot – The talented professionals in the Young Leaders Collective have shared their belief that the profession is well-positioned to attract future generations. They are eager to contribute ideas to IFAC on how to enhance the profession’s appeal, among other key topics on the profession’s agenda. The Collective is also developing recommendations for a global group of students and early-career professionals, beginning with a call to action in the coming weeks focused on sustainability. We are one of the most trusted professions in the world, and our role is extremely dynamic. We lead businesses, create sustainable value, advise large and small clients across sectors, provide assurance, and manage vast public and private sector budgets and programmes. But we must reclaim our narrative and tell that story!

Contabilista – At a time when there is much talk about the need to cultivate and foster ethical and socially responsible standards, do you believe the future is promising for the profession in this regard?

Jean Bouquot – One thing will remain constant: the indispensable role of our principle-based International Code of Ethics. The high standards of our profession and our unwavering commitment to integrity will remain unchanged. It is up to each individual to approach new challenges with an inquisitive mind. For example, we must recognise the potential of new technologies while remaining alert to unintended consequences. We must remain open to new research and developments that accompany the sustainability transformation. But this is not new. I have no doubt that we will rise to the occasion. We must also remember that working in the public interest is the profession’s permanent mission. That is what sets us apart from other service providers and is essential to the trust we bring to our clients and stakeholders. But this is not guaranteed; it requires ongoing attention. In this respect, IFAC’s role as the voice of the profession is crucial.

📌 The original Portuguese-language version was published in issue no. 299 (March 2025) of the OCC’s official monthly magazine “Contabilista”, available on the OCC’s website: 🔗 https://www.occ.pt/pt-pt/publicacoes