Following revelations of large-scale tax abuse in the Panama Papers, the European Union released a blacklist of tax haven jurisdictions it will impose dissuasive sanctions on. However, critics point out that Member States such as Malta and Luxembourg benefit from policies that would be grounds for blacklisting in third countries. Considering this criticism and the ethical ramifications of large-scale tax avoidance, how should the EU mitigate the economic cost of tax havens both within and outside of the union?