Belgian Presidency Aims To Progress EU Tax Package (Surprise, Surprise!)

by Ulrika Lomas, Tax-News.com, Brussels

09 July 2001

Yesterday the Belgian Prime Minister Guy Verhofstadt welcomed the Commission to the Egmont Palace in Brussels and noted that he and Commission President Romano Prodi both shared a passion for cycling. 'Let us make "riding into the wind" – something with which the Flemish are familiar – the theme of our collaboration in the coming six months,' he told Commissioners.

His key ministers set out their individual priorities for the Presidency. Finance Minister Didier Reynders of course wants to examine the question of an EU-wide tax, which will be discussed at this month's Ecofin meeting with the intention of formulating concrete proposals for the Laeken summit in December. He also called, ritually, for greater coordination of economic policies, taxation and integration of EU financial markets (and this one day after the Germans drove a coach and horses through the takeover directive after 12 years of futile work).

In the formal statement of priorities issued earlier in the week, the Presidency said:

'The single market has still not been achieved in full. For instance, financial markets need to be integrated. The Presidency will make efforts to push through a fiscal package. Simultaneous progress in the three areas covered by the package – tax on savings, taxes levied on businesses, interest and charges – is crucial here. Negotiations under way with all third countries - in particular Switzerland - will be pursued with a view to reaching a final agreement in 2002 on a draft directive on taxes levied on savings. Moreover, in consultation with the European Commission the Presidency will verify the extent to which a study can be carried out on the advisability, feasibility and any conditions associated with a tax on flows of speculative capital.'

There's no surprise here - all these goals had been widely trailed during the last few weeks. It remains to be seen whether the Belgians (arch-harmonisers at the centre of the Union) will be any more successful than their predecessors in forcing through part or all of the tax directive, which can fairly be said to have gone backwards on all fronts during the last year.

Recommended