Finance ministers meeting on 5 October will approve the listings without discussion, removing Anguilla, Dominica, and the Seychelles for good behaviour, according to draft conclusions seen by EUobserver.

But Panama was not even “largely compliant” with EU norms and had a “harmful foreign-source income [tax] exemption regime”, the EU conclusions said.

Panama became known internationally as a hub for dodgy money in the 2016 ‘Panama Papers’ revelations of financial mayhem and has struggled to repair its image ever since.