France Calls For More National Sovereignty In Tax Matters

by Ulrika Lomas, for LawAndTax-News.com, Brussels

28 February 2006

Following the French rejection last year of the EU constitution, President Jacques Chirac is to put forward plans for a "Europe of projects" instead, including proposals to increase national sovereignty over certain tax matters, according to reports in the European media.

The French President has reportedly drawn up a list of such projects, of which around five will be presented to European leaders at various points throughout the year.

Key among these is the French government's desire for less EU interference in tax matters, sparked by the recent furore over extending reduced VAT levels, which saw Chirac thwarted in his efforts to make good an election promise by reducing VAT rates for restaurants.

Other projects which may be proposed by the French leader reportedly include "European Union lessons" for school children in EU member states, and boosting funding for the office of Javier Solana, the EU's High Representative for the Common Foreign and Security Policy, in order to make him the EU's effective Foreign Minister.

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