This is the inherent problem of the EU, from both a social and economic standpoint; the member countries lose their competitive advantages over other countries because the socialistic EU bureaucrats can't handle any one country a) having any type of competitive advantage over another and b) not conforming to what they want.
A large purpose of the EU is to remove those trade barriers to make the economy more efficient. Of course some countries figure out how to take advantage of the single market using regulatory arbitrage, quickly entering a race to the bottom. Thus the EU is becoming the regulator in a lot of (non-tax) areas to prevent this. This is just the next logical step in this regard.
It’s worth noting that any EU rules on taxation are decided with unanimous consensus. No country here has to do anything against their will.
Are you saying it’s like communism?