As EU Presidency Looms Belgium Will Press For More Tax Harmonisation

Ulrika Lomas, Tax-news.com, Brussels

01 March 2001

Belgium's Finance Minister, Didier Reynders, has confirmed that he will call for more efforts to be made on the harmonisation of taxes within the Eurozone when Belgium takes charge of the European Union Presidency in July this year.

At a conference held this week on preparations for introduction of the euro notes and coins next year, Mr Reynders stated: 'It seems to be necessary to have European taxation. We will try to propose that for the medium-term and the long-term evolution (of the EU) during the Belgium presidency.'

During the conference, organised by the European Chambers of Commerce, Mr Reynders also announced that he aims to give Belgium's taxpayers a 1 billion Belgian franc (bfr) - around $30 million - tax cut to soften the blow of an initial loss of consumer buying power when prices are converted from Belgian francs to Euros next January.

A staunch advocate of the Euro, Mr Reynders is well known for arguing that the 12 Eurozone countries should be able to benefit from the introduction of the single currency on January 1, 2002 in that it will strengthen political and financial relations between the countries. He has stated: 'People will increasingly view Europe through the prism of its currency ... I am not trying to overturn relations among the big industrialised countries but it is normal that the euro group, which is in charge of the politics of the single currency area, has more contact. There should be more political contact between the US, Japanese and the euro currency zones.'

Mr Reynders also called for further discourse on the European Union's budget, saying 'if it is possible to go further in political co-ordination, we must also have a discussion about EU financing.'

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