Ireland has been likened to a tax haven in a new report which was overwhelmingly accepted by the European Parliament.

Along with Sweden, Denmark and Finland, Ireland was also criticised in the report for blocking digital services tax proposals at EU Council level aimed at the profits of large tech multinationals.

The report said it: "Deplores the lack of progress on digital taxation at the council."

Strong backing is given in the report to European Commission initiatives to close tax loopholes. However, the report strongly criticises the lack of progress in implementing such reforms at EU Council level, the decision-making body for ministers and heads of government from EU member states.

The report was adopted earlier today with 505 votes in favour, 63 against and 87 abstentions.

Recommendations include moving away from governments being allowed use their veto at European Council level to block tax reforms.

The report said it called on the European Commission to use a procedure "which changes the unanimity requirement in cases where the Commission finds that a difference between the provisions laid down by law, regulation or administrative action in Member States is distorting the conditions of competition in the internal market".

The report also questioned the link between foreign direct investment (FDI) in Ireland and the level of economic activity being carried out by multinationals in the state.

The report highlights "that the level of inward and outward FDI as a percentage of GDP in seven Member States (Belgium, Cyprus, Hungary, Ireland, Luxembourg, Malta and the Netherlands) can only be to a limited extent explained by real economic activities taking place in these Member States".

Luxembourg and the Netherlands were found to have more FDI combined than the US.

The report was co-authored by MEPs Ludek Niedermayer, who is part of the European People’s Party group, with which Fine Gael sits in the European Parliament, and Jeppe Kofod of the centre left Socialists & Democrats (S&D) group.

The report also calls for robust action on money laundering and names a number of banks in connection with the laundering of money from Russia.

Funding to support investigative journalism and whistleblowers is also called for in the report.

A European financial police force, an EU financial intelligence unit and an anti-money laundering watchdog are also called for in the report's recommendations.