Why 28 November matters

Every year on 28 November, the Mediterranean region and its peoples come together to celebrate the Day of the Mediterranean — a day dedicated to honouring our shared history, cultural heritage and common identity.

The date recalls the start of the Barcelona Process in 1995 — the milestone which laid the foundations for long-term cooperation among Mediterranean countries and eventually gave rise to the Union for the Mediterranean (UfM).

For us at FCM, this is more than a symbolic anniversary — it is a moment to reflect on what unites us, celebrate the diversity that defines us, and reaffirm our commitment to shared values: dialogue, solidarity, cooperation and mutual respect.

 

What the Day stands for

• A common heritage and cultural mosaic — The Mediterranean has been a crossroads of civilisations for millennia. From ancient trade routes and philosophical exchanges to shared cuisines, music, traditions and languages, the region’s heritage is rich and diverse. This day honours that legacy.
• Intercultural dialogue and exchange — The Day encourages connection across cultures, languages and generations. It invites all of us to listen, to learn, to connect.
• Unity, cooperation and common future — Beyond culture, the Day symbolises the aspiration to build a Mediterranean community based on shared prosperity, peace, stability and cooperation across shores.
• Visibility for positive cooperation stories — The Day offers an opportunity to highlight initiatives — cultural, social, environmental, economic — that bring people and communities together, bridging North and South, East and West.

 

Why FCM matters — accountants with a Mediterranean vision

As the only regional organisation representing professional accountants across the Mediterranean, FCM plays a strategic role in this renewed moment of Mediterranean ambition:

• Guardianship of transparency, integrity and good governance To ensure that the projects and investments envisaged under the Pact deliver real benefits, they must rest on sound financial management, accountability and auditability. FCM members — with their expertise in accounting, auditing, compliance and governance — are best placed to guarantee these standards.
• Supporting SMEs, entrepreneurs and local economies The Mediterranean region is home to many small and medium enterprises, often family-owned or community-based. With proper accounting, fiscal and governance support, these businesses can access financing, grow sustainably, create jobs and contribute to regional stability and prosperity.
• Bridging North and South, East and West — building a shared professional community FCM brings together professionals from diverse countries, cultures and backgrounds. This diversity is an asset: it enables exchange of best practices, harmonisation of standards, cross-border cooperation and mutual learning — strengthening the institutional fabric of the entire region.
• Promoting sustainability and long-term vision In a context of climate change, environmental challenges and resource constraints — exactly the fields targeted by the Pact’s green economy ambitions — accountants can contribute with ESG reporting, green finance, audit of sustainability projects and responsible governance.
• Reaffirming Mediterranean identity through professionalism Beyond geography or politics, the Mediterranean is a shared identity. By uniting accountants across its shores, FCM reinforces that identity — not only as citizens, but as professionals committed to integrity, cooperation and shared progress.

Call to Action — From Celebration to Commitment

On this Day of the Mediterranean 2025, FCM calls on its members, partners and the broader Mediterranean community to:

• Reflect on what the Mediterranean means to each of us — identity, heritage, home.
• Embrace initiatives, projects and cooperation that build bridges — cultural, economic, social.
• Support transparency, integrity and good governance in all undertakings — big or small.
• Promote sustainable, inclusive growth — especially for SMEs, youth, women and local communities.
• Engage actively in the opportunities opened by the Pact for the Mediterranean — bringing professional expertise and Mediterranean spirit.

Final Thought

The Mediterranean is much more than a sea — it is a living community of peoples, cultures, traditions and hopes. On this 28 November, the Day of the Mediterranean invites us to celebrate that community, honour its legacy and commit to its future.

At FCM, we stand ready — as accountants, as professionals, as Mediterranean citizens — to accompany that journey.

Giving Voice to Mediterranean Diversity and Bridging Differences
On 24 November, the António Domingues de Azevedo Auditorium, in Lisbon, once again became the stage for an international conference — gathering representatives from diverse jurisdictions across Europe and North Africa, all united by a shared Mediterranean sea.

Titled “Future-Ready Accountants: Innovation, Sustainability and Regional Impact”, the event was timed to coincide with the upcoming Mediterranean Day on 28 November, an occasion celebrating intercultural exchange, cooperation, diversity and the strengthening of bonds among Mediterranean peoples. (Mediterranean Day)

Throughout an afternoon of rich debate, the Ordem dos Contabilistas Certificados (OCC) and FCM joined forces to discuss how the cultural and professional diversity of various countries can help address the multiple challenges of our modern era.

 

Adaptability and Integrity
At the opening session, after the screening of OCC’s institutional video (English version), the OCC’s President stressed that regarding sustainability reporting “certified accountants and auditors are increasingly integrated,” and that these professionals have the duty to “provide the trust needed by users of non-financial information.”

In his remarks, FCM President Nelson Ferreira underscored the importance of conferences like this one to ensure “that accountants are ready to face the future and a rapidly changing reality.” He noted that, in the context of technological transformation, professionals must embrace specialisation and strengthen their skills.

Also contributing via a video message was Lee White, CEO of the International Federation of Accountants (IFAC). He emphasised the vision and leadership shown by the heads of OCC and FCM, particularly the promotion of “spaces of collaboration and reflection that our global profession needs — giving voice to diversity in favour of unity.” He added: “We are stronger when we listen to each other. This is a profession that opens doors anywhere in the world. Adaptability and integrity are what make this profession truly global.”

Speaking live from abroad was IFAC Board member Francisco Sant’Anna, who reflected on the demands placed on today’s accounting professionals. The Brazilian accountant asserted that professionals — as “agents of public trust” — should not settle for traditional roles, but strive for greater influence in high-level decision-making due to their unique knowledge. For Sant’Anna, the current global transformations represent an opportunity for the repositioning of the certified accountant in the world.

“Acting now is not optional — it is strategic.”

 

ESG, Sustainability and Public Value
The first panel — titled “ESG, Sustainability and Public Value” — was moderated by João Ferreira da Silva (advisor to the OCC President).

British expert Harpal Singh argued that, for small and medium-sized enterprises, resilience in a changing world must be supported by financial and sustainability literacy. As IFAC’s lead for SMEs and a representative of the Edinburgh Group, he emphasised the fundamental need to ensure “the voices of these companies are heard.”

From Bulgaria, Emil Vasilev (Institute of Certified Public Accountants of Bulgaria – IDES) described how his country is integrating sustainability directives, particularly regarding corporate sustainability reporting, in the context of Europe’s evolving regulatory framework. Vasilev noted that the one-year postponement of the directive offers breathing space — but also brings uncertainty.

From Albania, Berti Pashko (Institute of Certified Public Accountants of Albania – IEKA) presented his institution’s commitment to sustainability. He argued that sustainability will contribute to good governance, integrity and the building of public trust.

Representing OCC on the national accounting standards committee, Carlos Menezes stressed that “acting now is not optional — it is strategic.” He added that the connectivity between financial reporting and sustainability reporting cannot wait: the two must merge into a coherent and unified narrative.

 

Rethinking Management and Leadership in the Mediterranean
After the coffee break came the panel “Rethinking Management in the Mediterranean”, moderated by a representative of the French Conseil National de l'Ordre des Experts-Comptables (CNOEC), who highlighted the professional culture across Mediterranean organisations.

Veteran figure in international accounting gatherings, Philippe Arraou (ex-President of CNOEC) focused on the human dimension: “We must care deeply for the people we work with and manage human resources as part of the business. The best way to manage people is to set clear goals, delegate responsibility, and integrate them into the enterprise.” He emphasised responsibility and recognition as key pillars for retaining talent.

Italian accountant Massimo Ianni (APRI International), working on policies for internationalisation, argued that rethinking management is not merely a slogan, but a framework encompassing various components — especially leadership renewal.

From the consulting firm DFK, Miguel Nolasco Palma argued that talent retention in SMEs depends on engaging employees — especially younger generations, who value a work-life balance over traditional career progression. As he put it: “The new generations don’t want to be partners in the firm — they want fair remuneration while preserving social and family life.” He posed a critical question facing Mediterranean economies: “Who will lead organisations in the near future?”

Capacity Building and Regional Cooperation
The next session, “Capacity Building and Regional Cooperation”, highlighted how professional accountancy organisations can shape the future of the profession.

From Greece, Panagiotis Alamanos (IFAC) urged national PAOs to adopt resilient strategies focused on their members, capable of shaping the evolution of the accountancy profession in the Mediterranean region.

From Malta, Maria Cauchi Delia (CEO of the Institute of Accountants of Malta) presented her organisation (4,500 members) and emphasised “relevance and sustainability” as the foundations of its strategy. She defended that accountants must develop cross-cutting skills, and avoid the narrow stereotype — in particular by raising awareness among schools, universities, regulators and authorities about careers in accountancy.

Representing Tunisia, Sami Soumri (Secretary-General of the Order of Accountants of Tunisia – OCT) discussed professional cooperation and training in his country. Stressing the need for sharing, cooperation and joint effort, he proposed the creation of a Mediterranean Observatory for Accountancy Training. Faced with emerging risks, Soumri identified the certified accountant as “the guarantor of financial information and economic stability in our countries.”

From the global body Association of Chartered Certified Accountants (ACCA), Ms Caitriona Allis (Head of Europe) reiterated the commitment to public interest and outlined key trends: changing standards, competition for talent and digital transformation. The session was moderated by Society of Certified Accountants and Auditors of Kosovo (SCAAK), whose representative underlined regional cooperation as the bedrock of FCM’s dynamic.

 

A Pact of Hope for the Mediterranean
A central theme of the conference was the newly launched Pact for the Mediterranean by the European Commission on 16 October 2025 — a bold initiative aimed at deepening cooperation and building a “Common Mediterranean Space” rooted in joint ownership, co-creation and responsibility. (European Commission)

During the closing session, FCM President Nelson Ferreira described the Pact as a “signal of hope.” He noted the potential of the planned “Mediterranean University” to provide specialised training for accounting and tax professionals across the region.

In her remarks, business leader Sofia Baião Horta affirmed that the Pact promises shared prosperity — and called for the business community to be deeply engaged in this commitment. As representative of the Confederação Empresarial de Portugal (CIP) for international relations, she argued that the Mediterranean’s voice and dimension must be acknowledged in the broader EU political agenda. She also reminded participants that Portugal will assume the presidency of the MED‑9 group in 2027 — the alliance of nine euro-Mediterranean countries working together on issues like migration, climate and economic stability.

In closing, Nelson Ferreira spoke of “the beginning of a new era,” calling the Pact for the Mediterranean an “impetus for new achievements.” He underlined that, for certified accountants, specialisation in sustainability reporting will be a central step towards adding value to the profession.

This conference reaffirmed that the accounting profession in the Mediterranean is not only prepared to adapt — it is ready to lead, inspire and shape a future of cooperation, sustainability and shared prosperity across the region.

 

>> Click to view the full video conference

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/