The European Union has taken eight countries off its tax haven blacklist after they apparently took measures to “remedy” EU concerns about their approaches to tax dodging.

Panama, Barbados and Grenada were among states that fell off the list, which now numbers only nine nations – amid claims by campaigners that ministers were “undermining” the process.

The three countries, as well as South Korea, Macau, Mongolia, Tunisia and the UAE, will now move onto a “greylist” of countries that the EU has concerns about but which it thinks are in the process of improving their approach.

Countries on the greylist can be moved back onto the blacklist if they fail to improve quickly enough, but this has not happened yet.

Fair tax campaigners reacted with dismay when the list was introduced late last year because of its narrow scope and omission of a number of notorious tax havens, including British overseas territories. On Tuesday, NGOs further hit out at the decision.

“The EU is rushing to take countries off the blacklist without it being clear what they have actually committed to improve; this is further undermining the process,” said Aurore Chardonnet, Oxfam’s EU policy adviser on tax and inequality.

“It is no secret that tax havens remain at the heart of the EU, with four European countries actually failing the EU’s own blacklisting criteria.

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“EU governments should tackle tax havens within the EU with the same urgency they are pressuring other countries to adopt tax reforms that were decided by an exclusive club of rich countries.”

Markus Ferber, center-right MEP and vice-chair of the European Parliament’s economic committee, said: “Today’s decision is a confession of failure. Crossing Panama, one of the world’s most prolific tax havens off the blacklist, is a disastrous sign in the fight against tax avoidance.”

10 of the biggest tax havens in the world Show all 10 1 /10 10 of the biggest tax havens in the world 10 of the biggest tax havens in the world Luxembourg There are an estimated £2.5 trillion shares of mutual funds registered in the Grand Duchy, £1 trillion of which cannot be traced to an owner 10 of the biggest tax havens in the world Cayman Islands The Cayman Islands contain 6% of the world's total banking assets, but just 0.000008% of its population 10 of the biggest tax havens in the world Isle of Man David Cameron has said the Isle of Man, where there is no corporation, capital gains or inheritance tax, should not be considered a tax haven 10 of the biggest tax havens in the world Jersey There are over £3.5 billion assets per square mile on the self-governing Channel Island 10 of the biggest tax havens in the world Ireland Ireland made headlines last year when it emerged Apple was registered in the country in order to dodge over £40bn in taxes 10 of the biggest tax havens in the world Mauritius The Mauritian government notionally charges corporation tax, but companies can easily make this back through generous tax credits for foreign businesses 10 of the biggest tax havens in the world Bermuda Google holds more than £30bn in offshore cash reserves, primarily via Bermuda 10 of the biggest tax havens in the world Monaco A popular domicile for super-rich private individuals, Monaco has the most expensive property in the world. £1 million will buy just 225 square feet 10 of the biggest tax havens in the world Switzerland Switzerland has such secretive banking laws that it took until the 1990s to secure the release of Nazi cash reserves 10 of the biggest tax havens in the world Bahamas David Cameron's father ran an offshore fund which hired Bahamas residents to complete paperwork, thus dodging British tax bills

The decision to remove the countries was made by EU finance ministers in Brussels when they met for their monthly Ecofin meeting.

Ministers agreed the move after a recommendation by EU tax experts in the Code of Conduct Group.